| With the continuous improvement of China’s socialist market economic system,the capital market has also undergone earth-shaking changes,and the role of the Certified Public Accountant(CPA)industry has also increased.During the 13 th FiveYear Plan period,under the correct leadership of the Party Central Committee,the State Council and the Ministry of Finance and the joint support of relevant parties,the Chinese CPA industry is committed to serving the sound operation of the market economy.After more than 40 years of continuous development,the system and mechanism have been continuously optimized,the service field has been continuously expanded,and the overall development of the industry has shown a positive trend,which becoming an important force for promoting the healthy development of economy and society.In the capital market,it acts as the “financial statement police”,whose audit goal is to audit the financial statements provided by financial statement providers and issue objective,fair and appropriate audit conclusions.However,some accounting firms and CPAs do not perform their duties in the audit process,resulting in failure to complete the audit objectives.For example,the audit procedures of material misstatement risk are not standardized;the audit procedures are irregular;the control of confirmation is missing;effective audit procedures are not in place;the audit procedures of the related parties are not standardized and the audit papers are not standardized.These problems were finally reflected in the capital market,such as“Qiongminyuan”,“Yinguangxia”,“Kangdexin” and “Kangmei Pharmaceutical”,which challenged the role of CPAs as “financial statement police”.This thesis takes Beijing Xinghua Certified Public Accountants as the object of case,through sorting out the previous administrative punishment decisions and administrative supervision decisions issued by the China Securities Regulatory Commission(CSRC),as well as the economic impact and subsequent corresponding measures after being punished,to find out the mechanism of its economic impact,judge whether the punishments are effective,and whether the rectification measures are effective and reasonable.Based on this,suggestions are put forward to improve the audit quality of Beijing Xinghua Certified Public Accountants and other firms,so as to promote the healthy and stable development of the CPA industry.After analyzing the changes of important economic indicators of Beijing Xinghua Certified Public Accountants from 2014 to 2020,the following findings were finally obtained:After being punished,Beijing Xinghua Certified Public Accountants had a certain degree of negative impact on the firm’s reputation,business income,customer recognition,audit fees and audit quality.Especially after being punished for the first time,its comprehensive ranking,business income and the number of audit clients have declined significantly,which shows that the administrative punishment has an obvious effect.In the subsequent period of frequent administrative punishment and supervision,the above-mentioned five important indicators did not have obvious negative impact again,and maintained a stable state within a certain range.This is mainly due to two reasons: First,it is difficult for the subsequent punishment decisions issued by the CSRC and local regulatory bureaus to maintain the same effect,resulting in the failure of the CSRC’s administrative supervision.Second,Beijing Xinghua Certified Public Accountants has made targeted rectification measures against the administrative punishment from the CSRC,and has carried out a series of rectification measures to strengthen the implementation of audit quality control.These series of rectification measures have effectively improved the audit quality of Beijing Xinghua Certified Public Accountants,and fundamentally reduced the possibility of audit failure caused by the lack of responsibility of CPAs,so as to regain the recognition of Beijing Xinghua Certified Public Accountants in the capital market.The penalties imposed by the CSRC and the local regulatory bureaus on accounting firms are most effective when they are initially issued.With the weakening of the effect of successive punishments and the rectification measures taken by accounting firms after the first punishment,the confidence of the capital market in accounting firms has been gradually restored.Therefore,as the main supervision and management organization of accounting firms,it is necessary to further improve the supervision strength and means,so as to improve the effectiveness of supervision.As third-party audit service providers,accounting firms and CPAs need to enhance their professional ethics,further improve the effectiveness of the quality control system,and fundamentally improve the quality of auditing. |
