| The "Fourteenth Five-Year Plan" pointed out the need to improve the modern financial supervision system and the accountability system.The report of the 19 th CPC National Congress stressed the need for "innovative supervision methods",and the report of the 20 th CPC National Congress stressed the need to "strengthen and improve modern financial supervision".In recent years,the country has continuously strengthened the construction of the financial supervision system and mechanism,and made overall arrangements for the supervision resources,in order to realize the supervision modernization as soon as possible and build the bottom line of the national security development.From this point of view,joint supervision of multiple entities will become a powerful means to promote China’s economic development and standardize the behavior of individual entities in the capital market.In addition to further standardizing the self-discipline supervision implemented by the competent financial department and the China Association of Certified Public Accountants,it has become an inevitable trend to strengthen the supervision and management responsibilities of the stock exchanges directly managed by the China Securities Regulatory Commission.In 2017,the Administrative Measures for Stock Exchanges were revised and promulgated to further clarify the means and measures of the exchange in performing its front-line regulatory responsibilities and preventing market risks.Since 2020,the Ministry of Finance and other departments have successively issued implementation opinions on strengthening the practice management of accounting firms,standardizing the order of financial audit,and practically improving the audit quality.The CPPCC issued the CPA Industry Development Plan(2021-2025)in 2021,emphasizing that the industry supervision still needs to be strengthened,and the corresponding inquiry system should be improved,so as to strive for steady improvement in the level of enterprise integrity and audit service quality of all industries.In 2023,the two offices issued the Opinions on Further Strengthening Financial and Accounting Supervision,stressing that the financial department should perform the main responsibility of financial and accounting supervision according to law and give full play to the role of intermediary agencies in practicing supervision.It is not difficult to see from the documents issued by the national regulatory departments at all levels and industry management organizations how to ensure the authenticity and timeliness of the information disclosed by accounting firms under the situation of strong supervision and high selfdiscipline in order to enhance the quality of information disclosure of audit objects and enhance the competitiveness of social audit subjects,so that it can still ensure the timely supply of information in today’s increasingly strict market supervision in China,It is in line with the deeper expectation of the market for audit business,which is a problem that needs to be deeply considered in the process of China’s economic and social construction in the future.As early as 2014,the inquiry letters for major listed companies have been issued,and the normalized letters have been issued since 2015.This work is in the charge of the Shanghai and Shenzhen Stock Exchanges,which issued a wide range of inquiry letters,including but not limited to letters of concern,periodic reports,and inquiries on major issues.These documents highlight the authenticity of the financial information of listed companies,and require companies to explain and supplement the information that may be untrue.In this context,China’s supervision of accounting firms and other institutions has also increased.This paper studies the various characteristics of various inquiry letters issued by the exchange,and studies how the inquiry supervision mechanism was formed and what impact it had.This paper takes X accounting firm,which has a large scale of business and has received a large number of different types of inquiry functions issued by the Shanghai and Shenzhen Stock Exchange,as the research object,and finds that one accounting firm undertakes the audit and authentication of the annual financial statements of two or more listed companies at the same time,thus forming an audit linkage,through the common organization and management system,information exchange methods,and imitation and exchange of audit practice behavior The influence of auditor’s personal characteristics on decision-making can produce the infectious effect of regulatory inquiry.The research conclusion of this paper shows that the auditor teams of an accounting firm have similar practice habits,consistent thinking and practice of sorting and analyzing audit evidence,and the control process of audit quality,which makes it easier for audit clients of different industries and sizes to receive the inquiry letter from the Shanghai and Shenzhen Stock Exchange because they employ the same accounting firm.This paper finds that with the continuous improvement of the requirements of the state and investors on the quality of information disclosure,accounting firms,as the subject of identifying,certifying and evaluating the relevant information disclosed by customers,are increasingly subject to the strict supervision of the stock exchange.The inquiry letter system can urge the accounting firms to regulate the market atmosphere from the aspect of maintaining information security,so that the intermediary institutions can more clearly recognize their social responsibilities and improve the audit quality,Abide by professional ethics,reasonably ensure the authenticity of enterprise information disclosure,and also provide more protection for investors’ assets. |
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