Research On The Impact Of The Institutional Environment On Ruihua Certified Public Accountants

Under the background of the new economic era,information disclosure plays an important role in the securities market,and certified public accountants and law firms,as neutral third parties between the main body of accounting information and the securities market,have always played an extremely key role in ensuring the quality of information in the disclosure of accounting information.As the main regulatory departments of control firms and accountants,the CSRC and other departments such as the China Certified Public Accountants Association have the main responsibility for their compliance operations.Although new audit quality control rules have been implemented,the frequent occurrence of financial fraud cases has not been completely curbed: for example,the Luckin Coffee case,the Kangde new case,etc.Despite the various degrees of penalties taken by the SFC,the penalties for CERTIFIIs and firms have been repeatedly prohibited,indicating that the enhancement of audit quality lacks a correspondingly good institutional environment.Based on the perspective of the institutional environment,this study studies the impact of the institutional environment on the firm in view of the problem of audit failure of the firm,explores the defects in the institutional environment,and puts forward relevant suggestions for the defects to ensure the success and effective conduct of the audit work.This paper selects Ruihua Certified Public Accountants as the research object,adopts the literature analysis method and the case study method,refers to the relevant literature and concepts,follows the path of revealing the problem-analyzing the problem-responding to the problem,starting from the case of the "two years and two singles" penalty made by the securities regulatory department,based on the comparison of audit issues before and after the punishment of Ruihua firm,the proportion of non-standard audit recommendations,to verify that the relationship between the strengthening of audit quality and the punishment is small;compared with the year of audit work and the year of punishment,it is concluded that government supervision has a lag.The absence of government supervision;comparing the annual growth ratio of audit revenue of the penalized Ruihua firm,and the situation and the situation of other unpunished firms,it is concluded that the reason for the gradual decline of Ruihua firm is partly due to defects in the institutional environment;and a study was conducted on Yao Guoyong,an auditor involved in the green land and Juyou Network,and found that from the perspective of the auditor,the sanctions imposed by the CSRC were too insignificant compared with its potential benefits,and could not prompt it to strengthen its risk control concept and self-control awareness Finally,an analysis of the practice of the Chinese Institute of Certified Public Accountants,an industry self-regulatory organization,found that it did not effectively play its role in protecting member units,and accounting firms lacked strong support.In the end,it was found that there was a lack of government supervision in the institutional environment,and in terms of penalties and penalty priorities,CPAs and firms faced with deficiencies and deficiencies in the penalties imposed by the CSRC:the penalties were unbalanced,the firm’s fault tolerance system had not yet been formed and the circuit breaker system was too strong;from the perspective of the note-taking personnel,the low cost of violating the law could not prompt them to strengthen the concept of risk control and self-discipline.In view of these problems,the following optimization strategies have been explored for the current supervision and management system in China: strengthen the status of government regulatory entities,stipulate that enterprise executives bear full responsibility for financial and accounting information;divide supervision areas,reduce the level of penalty subjects,and establish an integrated information platform;balance the intensity of punishment personnel and firms,increase the amount of penalties for auditors,and reform the rigid practice of "two years and two orders";the China Annotation Association plays the function of protecting members;and establishes a hierarchical supervision frequency mechanism.Through the above measures,the healthy operation of the firm is guaranteed and a more orderly audit environment is formed.