Research On Motivation And Risk Of Listed Companies Changing Accounting Firms Under Record System

On March 1,2020,the amendment of the Securities Law officially took effect,marking a new development stage for the CPA industry.The Qualification Standard of Accounting Firms to provide securities Services is changed into "double filing System",which brings both opportunities and challenges to the industry.More firms can enter the securities market to undertake business,which also increases the intensity of supervision and illegal costs,and the competition in the securities service market will become more fair and fierce.Listed companies are required to disclose the true financial statements to the outside on a regular basis in accordance with the law.At the same time,they also employ accounting firms to conduct audit to ensure the accuracy and reliability of the financial statements.A public company may end its relationship with an accounting firm for some reason and choose to hire another firm.With the implementation of "double record system",listed companies have more choices when changing accounting firms.This paper first studies the current situation of listed companies changing accounting firms,mainly from the quantity,type,motivation and consequences of the change,and then focuses on the selection of Guangdong Zhongzhongxin Certified Public Accounting Firm and the audited company ~*ST Lonky as the research object of this paper,using literature research method,case analysis method and comparative analysis method.From the perspective of both the listed company and the accounting firm,the real motivation,results and risks of this change are analyzed.Finally,it puts forward some suggestions on risk prevention from the perspective of listed companies,accounting firms and regulatory agencies.Through the analysis of the case,it is concluded that ~*ST Lonky changed to employ Guangdong Zhongvocational letter accounting firm’s motivations are as follows: 1.From the perspective of listed companies: the company has defects in internal control;The company is in financial trouble;The management has changed;Changing firms are more likely to obtain improved audit opinions.2.From the perspective of accounting firm: explore the securities market and strive for market opportunities;Client firms offer higher audit fees.The results are: ~*ST Lonky net profit turned into a profit;The firm issues improved audit opinions;Exchange inquiry letters to strengthen regulation;This has caused a negative market reaction.The risk of change exists in the delisting risk of ~*ST Lonky and the risk of the successor accounting firm issuing the audit report with low audit quality,the risk of the professional competence of the secondary vocational trust firm,the risk of audit and the regulatory risk faced by both sides.Based on this,this paper puts forward risk prevention suggestions for listed companies,accounting firms and regulatory agencies to maintain the orderly operation of the securities audit market.