Non-punitive Supervision, Auditor Changes And Audit Qualit

In 2013 and 2014,the Shanghai Stock Exchange and Shenzhen Stock Exchange successively operated the information disclosure through train business,which strengthened the front-line supervision function of the exchange and formed the system of "relax regulation and strengthen supervision".Among them,the inquiry letter is non-penalty supervision,but it is mandatory to some extent.The stock exchange plays a supervisory role in information disclosure of listed companies by asking listed companies and auditors about abnormal risks in their announcements or financial reports,and also brings auditors some audit pressure,so as to improve the quality of auditors’ audit services.And the industrial structure of listed companies on the separation of ownership and management rights,inevitably need external auditors supervise its auditors as a kind of economic detective,through to the listed company to provide fair and objective financial report audit opinions,supervision of the listed company provide reliable financial statements.At the same time,auditors are very sensitive to the information of non-penalty supervision received by listed companies,which is a signal of increased audit risk,and they will protect their audit quality by increasing audit procedures and expanding audit scope.But for some receive annual report information letter of listed company,its financial statements is the auditor for verification before disclosure,in the case of unable to meet the audit expectation of listed companies will not to change auditors to meet the audit of listed companies expect,if changed the auditor and can achieve higher audit quality is worth further exploration.In this paper,the impact of non-penalized supervision on auditor change of listed companies is studied as the starting point,and the change of audit quality after the change is measured as the main research content and direction of this paper,presenting the logical framework of this paper.Combed the non punishment regulation’s effect,impact on auditor changes and impact on the quality of audit related literature at home and abroad,this paper expounds the non punishment according to the regulation,the basic theory of auditor changes and audit quality,using the method of combining literature research and case analysis,through a large number of data analysis by non punishment regulation of listed companies and auditor change the status quo and related regulations,The paper summarizes the influence of non-penalized supervision on auditor change and audit quality of listed companies.Taking *ST Meishang as the case of a listed company in this paper,this paper introduces that *ST Meishang,after receiving a letter of inquiry in 2020 and supervision,changed the auditor to issue audit opinion,received the letter of inquiry in the annual report,and then changed the situation of the auditor,respectively from the firm’s ranking,the types of audit fees,audit report and surplus management level of the four aspects,After analyzing the change of audit quality after each auditor change,it is concluded that non-penalized supervision can indeed lead to auditor change to a certain extent,and can promote the improvement of audit quality after the change.But according to the case study found that there are also the special case of audit quality decline,for non punishment regulation did not achieve the desired effect,through the internal governance of listed companies and financial conditions were analyzed,and found that when the listed company’s internal governance and poor financial situation has inhibitory effect on the effect of non punishment regulation,to cause a decline in quality of audit conclusion.In view of this conclusion,this paper puts forward suggestions from macro and micro levels respectively.On the one hand,it aims to arouse the attention of relevant departments,strengthen the strength of non-penalty supervision,understand the law and sum up the experience,and improve the accounting firm reply system and auditor change system,so as to rectify the industry atmosphere;On the other hand,it hopes to give some experience to other listed companies and audit institutions,strengthen the strength of peer inspection,and at the same time,it also hopes to make investors pay more attention to non-penalty supervision and change of auditor behavior,so as to jointly promote the healthy development of the whole audit market and capital market.