Research On Substantial Audit Of Equity Transfer Under Registration System

The Third Plenary Session of the 18 th Central Committee of the Chinese Communist Party clarified the "promotion of the reform of the equity issuance registration system" and opened the curtain on the reform of the registration system.After a long period of deliberation,the Securities Law was introduced at the end of2019.The law established chinese stock issuance system based on the registration system and opened a new chapter in the development of chinese capital market.Due to the large difference between the registration system and the approval system,The academic community has also made a good exploration of the audit method under the registration system.This article also focuses on the research on the topic of "substantive review under registration".Demonstrating that the ultimate purpose of substantive review under the registration system is to achieve investor protection and promote the reform and improvement of the capital market,Its significance lies in the ability to reduce the issuer’s speculative motivation,facilitate risk prevention,and help investors grasp the investment information they need.The substantive review is mainly carried out by means of an inquiry letter issued by the exchange.Its purpose is to improve the timeliness,transparency and adequacy of information disclosure,in terms of review content,it mainly focuses on whether the issuer meets the plate positioning,whether it meets the information disclosure requirements,and whether it meets the listing conditions.Through a series of demonstrations,this paper draws conclusions: there are still substantive audits in the process of listing enterprises under the registration system,equity transfer disputes are increasingly numerous,and information disclosure needs to be further strengthened when listing enterprises.The main lines of this article are: Through combing through the literature,the research progress on the impact of the quality of accounting information disclosure on the listing process,the validity of the inquiry letter,and the equity transfer process of non-listed companies are discussed.It also reviews the theory of information asymmetry,information disclosure theory,securities regulatory theory,and market signal theory.After expounding the similarities and differences between the registration system and the approval system supervision,the relationship between the formal audit and the substantive audit is pointed out,and the significance,method,path and content of the substantive audit are proposed;at the same time,around the listing conditions for clear and stable requirements for equity,the descriptive statistical characteristics of cases involving equity transfer litigation are sorted out and the requirements for equity transfer for substantive review are put forward.In the process of analyzing the case of the termination of the review of the listing and issuance of Jiangsu Netin Technologies Co.,Ltd.on the Growth Enterprise Market,After combing through the content of the equity transfer in the declaration materials,inquiry letter and reply letter,the irregularities in the equity transfer of the issuer were sorted out,and the conclusion of the substantive review under the registration system was verified.Finally,relevant suggestions were put forward for enterprises,intermediaries and investors to be IPO.