| With the explosion of the Luckin coffee fraud case,the second round of trust crisis in Chinese stocks is intensifying,and the reputation of Chinese stock companies has undoubtedly been seriously damaged,which has even hindered the development of cross-border audit and regulatory cooperation between China and the United States.This paper counts the number of domestic enterprises in China going overseas to list and delist during the period from the first round of the Chinese stock crisis to the second round of the Chinese stock crisis,and it can be found that the continuous fermentation of the Chinese stock crisis has led to the survival of Chinese stock enterprises,and accounting firms have also fallen into the dilemma of being supervised by the two countries,coupled with the analysis of the new regulatory environment of the "Foreign Company Accountability Law" and the new "Securities Law" promulgated by China and the United States,so it is urgent to improve the audit quality of Chinese stock enterprises,and cross-border audit supervision cooperation is urgent to be explored.This paper first compares the relevant literature and theories on the Chinese equity crisis and cross-border audit regulatory cooperation.It then analyzes the root causes of the difficulties in promoting cross-border audit regulatory cooperation,and finally chooses Ernst & Young Hua Ming’s audit of Ruixing Coffee as the object of study.And the research on cross-border audit supervision and cooperation between Chinese companies and accounting firms,in particular,the conclusions reached can be adapted to the current regulatory context and international environment.The study also offers some suggestions for future cross-border audit and regulatory cooperation between China and the United States.The study found that the cross-border regulatory cooperation between China and the United States in the audit of Rui Xing Coffee by Ernst & Young revealed problems that were not only influenced by the differences in the audit and regulatory structures of the two countries,but also by the differences in the legal systems of the two countries.Mainly reflected in the following three points: First,the audit regulation is not equivalent,on the one hand,is the difference in the powers of the two countries’ SEC,followed by China has not signed the enhanced IOSCO memorandum,the U.S.side has signed,the two sides are difficult to reach regulatory equivalence on the basis of mutual trust,in addition,the two sides have different attitudes towards audit regulation;Second,the differences in the legal system of cross-border audit regulation between the two sides "dilemma" The situation: the difficulty of access to the audit transcripts,the difficulty of disciplinary action against extraterritorial executives,as well as the implementation of extraterritorial jurisdiction in China is also limited;third is the existence of other levels of differences,such as the development of the capital market is not equal,sovereign political and economic differences,as well as differences in accounting and auditing standards.This paper presents some suggestions on cross-border audit and regulatory cooperation in the case of Rui Xing Coffee,first of all,to optimize the domestic securities regulatory rule of law system and enhance regulatory competitiveness,the former can improve China’s securities laws and regulations and enhance the law enforcement power of the CSRC,the latter can strengthen the domestic supervision of Chinese-listed enterprises,explore the equivalent supervision of Sino-US auditing and implement the strategy of competitive international boards;secondly,the establishment of an international audit regulatory cooperation mechanism to promote joint inspection under the framework of bilateral or changeable cooperation.Finally,strengthening the self-discipline awareness and audit quality of enterprises and intermediary institutions can also play a moderate role in picketing of short-selling institutions.It is hoped that the findings of this paper can provide ideas for solving the impasse of cross-border audit regulatory cooperation between China and the U.S.,and also provide some reference for the improvement of relevant regulatory laws in China. |
