Research On The Legal Regulation Of Accounting Firms Under The Share Issuance Registration System

The reform of share issuance registration system is a significant change in China’s capital market.The registration system takes information disclosure as the core,which puts forward higher requirements for the information disclosure of issuers.As the "gatekeeper" of the capital market,accounting firms are responsible for maintaining the order of the capital market and protecting the interests of investors.The reform of the registration system makes the accounting firms face new challenges: one is the increasing responsibility;the other is the increasing practice risk.Under the registration system,how to urge the accounting firms to return to the role of "gatekeeper" is the central task of the legal regulation of accounting firms.In addition to the introduction and conclusion,this paper is divided into four parts.The first part is why we should strengthen the legal regulation of accounting firms under the registration system.First of all,strengthening the legal regulation of accounting firms is determined by the nature of the registration system.Compared with the traditional approval system,the most prominent feature of the registration system is to strengthen the review concept centered on information disclosure.In order to improve the quality of information disclosure of issuers,accounting firms need to fully perform their duties.Secondly,under the registration system,the CSRC will no longer conduct substantive review on the issuers,but let investors make independent judgment,which makes investors more dependent on the information disclosed by the issuers.In order to protect investors from being misled by the wrong or false information of issuers,it is necessary to strengthen the supervision of accounting firms on the information disclosure of issuers.Finally,under the registration system,the responsibilities and practice risks of accounting firms are significantly increasing,and the legal regulation of accounting firms should be strengthened to promote accounting firms to fully perform their duties and scientifically allocate their practice risks.The second part is the basic theory of legal regulation of accounting firms under the registration system.In order to improve the reliability of the financial information of the issuers,the accounting firms verify the financial information of the issuers by means of audit and express audit opinions.In order to ensure the objectivity and fairness of audit opinions issued by accounting firms,independent audit theory requires that accounting firms must be independent of issuers.Secondly,there is a certain conflict of interest between accounting firms and investors represented by the public,and this conflict will be more obvious under the registration system.The theory of interest balance requires that the two kinds of interests be balanced by legal means.Finally,in the face of increased practice risk,accounting firms need to make full use of risk sharing theory to reduce their own risks.The third part is the problems in the legal regulation of accounting firms in China.From the current situation,there are three main problems in the legal regulation of accounting firms in China.First,the independence of accounting firms is insufficient,so that accounting firms can not fully perform the duties of "gatekeeper".Secondly,the appraisal mechanism of accounting firm’s professional responsibility is not perfect,and there are some defects in the judgment standard and identification procedure of accounting firm’s legal responsibility,which makes it difficult to scientifically and reasonably distribute the responsibility of audit failure between accounting firm and investors.Finally,the practice risk of accounting firms increases significantly under the registration system,which urgently requires accounting firms to buy professional liability insurance as a guarantee of risk.However,at present,the professional liability insurance of accounting firms is not perfect,and the enthusiasm of insurance is not enough,so that accounting firms can not more effectively resist risks and better safeguard the interests of investors.The fourth part,the improvement of the legal regulation of accounting firms in China.In order to enhance the independence of accounting firms,we should change the traditional audit entrustment mode,limit the proportion of non-audit services provided by accounting firms for audit clients,and support accounting firms to become bigger and stronger through relevant policies.In view of the unsound professional responsibility appraisal mechanism of accounting firms,it is necessary to clarify the judgment standard of "diligence" and enhance the independence of the third-party appraisal institution.In the face of the imperfect professional liability insurance of accounting firms,we should change the voluntary insurance to compulsory insurance,and require accounting firms to disclose the insurance information.