Research On The Impact Of CSRC’s Administrative Punishment On Audit Quality Of Firms

CPA plays an important role in many aspects,such as enhancing the quality of financial information report and information credibility,and reducing information risk.In recent years,there have been a lot of financial fraud and audit failure cases,which indicates that the audit market has appeared in varying degrees of lack of integrity.In order to make the audit market more fair and solve the problem of lack of integrity as soon as possible,the government departments need to strengthen audit supervision and increase the intensity of administrative punishment.However,it is necessary to carry out further empirical analysis whether the audit quality is improved after the firms accept the administrative punishment of CSRC.This study focuses on the analysis of the correlation between CSRC administrative punishment and audit quality of firms,and adopts literature method,empirical analysis method and regression analysis method to carry out analysis.Firstly,the research background,domestic and foreign research status,research content,technical route and research methods are analyzed.Then it expounds the institutional background and basic theory of the CPA supervision system,and finally introduces specific data cases to carry out empirical analysis.Through this research and analysis,the main research conclusions are as follows:The audit quality of accounting firms and certified public accountants can be improved obviously after accepting the administrative punishment of CSRC.Once accounting firms and certified public accountants are punished for audit failure,they will spend more time and energy to improve audit quality in order to recover their good image and potential loss in the public mind.Second,penalizing both signing accountants and accounting firms can improve audit quality better than penalizing signing accountants alone.Third,the top 10 firms improved their audit quality significantly more after being penalized than non-top 10 firms.Large firms,whose internal mechanisms are more perfect,can also take timely adjustment policies after receiving administrative penalties to promote the improvement of audit quality.Fourthly,countermeasures to improve audit quality are put forward according to the conclusions drawn in the study.Specific measures include: enhancing the efficiency of government supervision,continuously improving the civil liability compensation system,expanding the scale of accounting firms,standardizing the information disclosure system,and optimizing the supervision mechanism after punishment.