Study Of CICPA Preventive Supervision’s Effect On Audit Equdlity Of ShineWing

With the booming progress of the capital market in China,the competition among enterprises is more intense.Investors,as the main users of accounting information,have a variety of channels to obtain information,and the reliability of information needs to be screened.Clearly Investors demand more and more high-quality accounting information,which leads to higher requirements of audit quality in the capital market.However,the audit failure cases in recent years show that the audit quality of listed companies in China is worrying,the low quality audit cause quite big profit loss to Stakeholders,bring about adverse effects on the benign development of the auditing profession and the capital market.For doing the economic supervisory function well,complete audit tasks with high quality and promote the healthy development of capital market,the CICPA strengthen the supervision of audit quality through interview.The essence of CICPA’s interview with the audit firms is to prevent in advance through industry supervision,so as to improve the quality of audit.Based on risk-oriented audit theory,audit insurance theory,audit reputation theory and signal transmission theory,this thesis takes Shine Wing Accounting Firm as a case object to systematically study the influence on the audit quality of interviews conducted by the CICPA.Firstly,on the basis of explaining the research background and significance,the relevant literature is sorted out;Secondly,it introduces the CICPA’s interview with Shine Wing.Again,it selects A-share listed companies of Shenzhen and Shanghai stock exchanges in 2001-2020 as the research sample,from the degree of earnings management,the rules,audit fees,financial report restatement and audit opinion,we note the agreement of the five point of comparison and analysis of before and after,to analyze its impact on audit quality;Finally,the thesis makes a conclusion and puts forward specific suggestions of high quality audit from the three levels of supervision,firm and the CPA.The research main conclusions of this thesis are as follows: The audit quality of Shine Wing has been improved after the supervision of the CICPA:(1)The number of non-standard audit opinions issued by the firm increased obviously,indicating that the appointment mechanism improved the audit quality;(2)The proportion of financial restatements decreased significantly in the overall trend.It can be seen that the CICPA’ behavior in improving audit quality plays a positive role;(3)The interview of CICPA improves the audit robustness of firms,restricts the real earnings management behavior of listed companies,and is conducive to the improvement of audit quality;(4)The CICPA made an appointment with Shine Wing to remind listed companies of the risk of abnormal performance fluctuations,which is conducive to improving the prudence of Shine Wing in annual report audit,increasing audit input,and thus improving audit quality;(5)From the perspective of reputation,financial irregularities are alleviated due to the interview behavior of the CICPA,and the interview behavior of the CICPA is conducive to improving audit quality.Therefore,this thesis argues that the contract negotiation is beneficial to raise risk awareness of firms and improve the audit quality of firms.