Research On Audit Quality Of Newly Recorded Accounting Firms

Since the Fifth Plenary Session of the 19 th CPC Central Committee in 2020,"High-quality development" has become the key direction of China’s economic and social development.In2021,The General Office of the State Council issued the Opinions of The General Office of the State Council on Further standardizing the Financial Audit Order and Promoting the Healthy Development of the Certified Public Accountant Industry(No.30,2021).It is increasingly important to improve audit quality in the new era.Under the new "Securities Law",accounting firms engaged in securities business services from the examination and approval system to the filing system,no longer have strict access conditions,at the same time,the legal responsibility of securities service institutions and the intensity of illegal punishment has changed,the audit industry is faced with opportunities and challenges.Under the examination and approval system,only 40 firms in China have the securities qualification,and the securities audit market appears the oligopoly trend.Under the filing system,firms can engage in securities business only by filing according to regulations.Therefore,more and more firms enter the securities audit market,stimulating the vitality of the audit industry.In 2021,Shenzhen Tangtang was punished,then the cancellation of securities qualification restrictions after the audit quality of securities firms qualified? As an important regulatory force in the capital market,the audit quality of the newly recorded accounting firm deserves attention.Based on the principal-agent theory,information asymmetry theory,economies of scale theory and other theories,this paper uses case analysis and comparative analysis to investigate the audit quality of the newly recorded firm.By comparing the changes of the industry under the approval system and the filing system,the overall audit quality of the newly recorded firm and the original securities firm,and the case analysis of A accounting firm to study the audit quality of the newly recorded firm and its influencing factors,based on which to explore ways to improve the audit quality of the newly recorded firm.Earnings management,audit opinion,firm size and other proxy indicators are selected to measure audit quality.Through the overall analysis and case analysis,it is found that the audit quality of the newly recorded firm is relatively low.Further analysis found that the reasons mainly lie in the firm,the auditee and the external environment.Based on literature review,overall analysis and case analysis,this paper puts forward some suggestions to improve the audit quality of newly recorded firm.Firstly,accounting firms should abide by professional ethics;Find the right market positioning;Improve the audit quality control system;Pay attention to personnel training;Strengthen its construction of informatization.Second,the perspective of CPA association: to promote the coordination and refinement of laws and regulations;Strengthen coordinated oversight;We intensified publicity for the new law.Third,from the perspective of regulatory agencies: refine laws and regulations to clarify the responsibilities of all parties;Improve the firm rating and recruitment mechanism;Focus on key areas and strengthen information disclosure.Due to the short implementation time of the filing system and the lack of relevant research literature,this paper puts forward some suggestions to improve the audit quality of the newly recorded firm based on the in-depth analysis of the whole and cases,in order to make contributions to improving the quality of enterprise financial information and promoting the healthy development of the capital market.At the same time,due to the short policy implementation time,limited resources and other reasons,some data in this paper needs to be improved,and the analysis is not deep enough,which requires continuous attention and improvement in the future.