Research On Reputation Damage And Repair Of Dahua Accounting Firm

The reputation of accounting firms is one of the standards used in the audit market to comprehensively measure the practice level and professional ethics of accounting firms.Under the influence of the reputation mechanism,the high reputation of accounting firms is usually accompanied by higher earnings,and if the reputation is damaged,a series of adverse economic consequences will be produced.In the past few years,there have been many cases of financial fraud in the listed companies and the failure of the audit of the accounting firms.The China Securities Regulatory Commission has investigated and punished the accounting firm for failing to do its due diligence during its practice,which not only makes the public seriously doubt the audit quality,but also influences their credibility,which is unfavorable to the steady and orderly development of the capital market.In order to maintain the benign operation of the capital market,the regulatory authorities have to introduce more stringent regulatory measures,increase the cost of violations of the firm,to fulfill the responsibility of the audit institution as the gatekeeper of the market.In April 2021,the Chinese Association of Certified Public Accountants issued a development plan for the CPA industry from 2021 to 2025,requiring accounting firms to attach importance to and strengthen brand building,and strive to establish a high reputation accounting firm widely recognized by the whole society.Under the guidance of relevant policies,if an office wants to develop healthily,long-term and stably,it has to pay attention to the construction of reputation.Therefore,this thesis,aiming at Dahua CPA Firm,explores the reasons for its reputation damage and countermeasures,which has certain significance for optimizing the firm’s own management,maintaining and improving its reputation.On the basis of reading and referring to domestic and foreign literatures related to the reputation of firms,this thesis adopts the case analysis method,based on the case of the reputation damage of Dahua CPA Firm,analyzes the economic consequences of the reputation damage,and explores the causes of the reputation damage from the four stages before the reputation damage,in the process of practice,at the outbreak of crisis and after the reputation damage.Based on the theory of corporate reputation crisis maintenance and repair,corresponding countermeasures for reputation repair are proposed from four aspects: reputation rescue,past review,reputation reconstruction and reputation restoration.According to the research,Dahua CPA Firm was suspended from its IPO and refinancing audit business by China Securities Regulatory Commission after its reputation was damaged,which required it to bear joint and several liability for compensation,and its client maintenance ability and expansion ability were adversely affected.Further analysis found that Dahua Law Firm had a lack of risk awareness before the reputation damage,and the main reason for the reputation damage was poor audit quality in the process of practice.The failure to deal with the crisis effectively and the delayed repair behavior after the reputation damage also aggravated the reputation damage of Dahua CPA Firm.Based on the analysis of the reasons,this thesis puts forward corresponding countermeasures,including strengthening crisis public relations to save reputation,finding the reasons for failure to avoid repeating the past mistakes,strengthening internal management to rebuild the reputation of the firm,and making long-term planning for continuous reputation recovery,so as to provide certain ideas and references for the subsequent research on reputation damage and restoration of accounting firms.