Research On The Effect Of CPA Audit On The Protection Of The Rights And Interests Of Small And Medium Investor

Small and medium investors are an important part of the securities market.However,behind the prosperous development of the securities market,"emptying" by major shareholders,malicious cash handouts and financial frauds occur frequently,and the rights and interests of small and medium-sized investors are not protected.Obviously,the securities market lacks an effective check and balance mechanism to balance the conflicts between major shareholders,managers and small and medium investors,and CPA audit,as an independent third-party supervisory body in the securities market,can play its governance function to supervise the management behavior of listed companies and control them,so as to protect the rights and interests of small and medium investors.Therefore,CPA audit,as an alternative to the internal and external supervision of enterprises and a supplement to the inadequate legal and institutional environment,becomes a means to check and balance the interests between major shareholders and small and medium investors,and makes certain contributions to the protection of the rights and interests of small and medium investors.Based on this,from the perspective of CPA audit,this paper combines agency theory,information asymmetry theory,control self-interest theory and insurance theory,and selects A-share listed companies in Shanghai and Shenzhen in China from 2007 to2020 as the research sample for empirical research,using empirical analysis to investigate CPA audit,major shareholders’ "hollowing out",financial fraud and financial fraud.The study concludes that CPA audit,as a check and balance between major shareholders and small and medium-sized investors,can inhibit major shareholders’ "emptying",reduce malicious payouts and prevent financial fraud.The smaller the shareholding of the largest shareholder and the better the legal environment,the better CPA audit can protect the rights and interests of small and medium-sized investors.Based on the above findings,this paper proposes four recommendations: first,to improve the laws and regulations of the securities market to promote fairness in the securities market;second,to limit the power of the largest shareholder to form checks and balances among shareholders;third,to improve the audit quality and give full play to the audit governance function;fourth,to enhance the ability of small and medium investors to obtain information,the ability to defend their rights,and the awareness of self-protection to protect their own rights and interests.