A Case Study On Tangtang Selling An Audit Opinion

Our country’s capital market after more than 30 years of development,has got remarkable achievements,but a lot of problems and not standard also gradually appeared.The means of fraud of listed companies are increasingly hidden,and the risk of audit failure of accounting firms is greatly increased.An important reason for this phenomenon is that accounting firms lose their independence and sell audit opinions to listed companies.The authenticity of accounting information and the trust of the society to the auditing industry have been repeatedly impacted.In order to better deal with the intricate capital market and protect the legitimate rights and interests of investors,our country formally implements the newly revised Securities Law in 2020,and the new law comprehensively implements the issuance and registration system of securities,which greatly increases the illegal cost of securities and compiles the intermediary "gatekeeper" ’s responsibilities.In this paper,the selling of audit opinions by Shenzhen Tangtang Firm to *ST New Billion is selected as the research object,and the literature review method and case study method are comprehensively used.In the literature research part,the relevant literatures about audit failure and audit opinion purchase at home and abroad are sorted out,and some important concepts and theories are elaborated as the logical basis of the full text.In case analysis part,first introduced the basic situation of the two main body and the case of the policy background,and then sell to open the whole process of audit opinions are expounded,* ST new change of firms and the high audit fees,open \ * ST new commitment audit opinion type,open the low quality audit,issue false audit reports.Then,the causes of selling audit opinions are analyzed from three perspectives.Firstly,the demander of audit opinions puts forward the purchase intention,then the provider of audit opinions loses professional ethics,and finally,the market regulator imposes punishment and weak supervision on the former two.On this basis,this paper puts forward countermeasures and suggestions to prevent audit failure from the perspectives of accounting firms and supervision: first,firms should undertake business cautiously,maintain independence,establish quality management system,and achieve industry self-discipline;In addition,the regulatory bodies should have specific targets for listed companies and accounting firms,such as strengthening the in-process and post-event supervision of audit work and strengthening the daily inquiry system.This case is relatively new and has reached the most in history in many aspects.Tang Tang Firm is the first small and medium-sized firm in China to issue audit reports of listed companies,and it is also the intermediary institution that has been punished the most severely after selling audit opinions.It has certain theoretical and practical significance.