Research On The Motivation And Impact Of ST Xinyi's Re-employment Of Shenzhen Tangtang Office

Accounting firms have always been independent of listed companies and the government,as a third-party intermediary to supervise the financial situation of listed companies and enhance the credibility of financial information.Listed companies have the responsibility and obligation to disclose true financial reports.Accounting firms need to provide fair and objective audit on financial reports and express reasonable audit opinions.If the type of audit opinion issued by the accounting firm can not satisfy the listed company,or can not meet some requirements of the regulatory authorities,then the listed company has the motivation to choose to change the audit institution.According to the old securities law,the audit business of listed companies needs to have the qualification of securities and futures.More than 40 accounting firms with securities qualification occupy the whole market of annual report audit of listed companies.The new "Securities Law" cancels the qualification requirements of securities and futures.Theoretically speaking,any domestic accounting firm is qualified to engage in securities service business,which will undoubtedly bring great changes and impact to the securities service market.Listed companies have more choices in the appointment of audit institutions.Under the background of the new system,small and medium-sized accounting firms become a supplier of annual report audit of listed companies,which will inevitably lead some listed companies to choose to change their auditors.Therefore,it is of great significance for investors to better understand the capital market,reduce the information block caused by information asymmetry,and then help investors make the right decisions to study the motivation,impact and consequences of this kind of listed companies' annual report audit change to small and medium-sized accounting firms.This paper focuses on the re employment of * ST Xinyi,the first company to cooperate with the non original securities qualification Accounting Institute after the implementation of the new securities law.It combines theory with cases,and uses case analysis and comparative research methods to analyze the real reasons behind the re employment and the impact.This paper first summarizes the annual report audit of Listed Companies in 2019 and the change of accounting firms,then summarizes the relevant companies that plan to employ small and medium-sized accounting firms after the new securities law is implemented,and combs a series of external announcements of * ST Xinyi's re employment to Shenzhen Tangtang,which can have a clear comb of this event,and then analyzes the real motivation of * ST Xinyi's change of accounting firms For example,it is difficult to operate,there are defects in internal control and it is difficult to buy audit opinions from large firms;for firms,they want to enter the audit market to obtain high revenue from securities audit business.Through further analysis,we can see that the re employment also has an impact on the audit of small and medium-sized accounting firms in the future.Accordingly,this paper puts forward relevant suggestions to the relevant parties in the market.With a view to the healthy development of China's securities audit market.