New rules first Chinese firm three problems to be solved

SSE reminded the accounting firms that the ability, responsibility and determination to fulfill their responsibilities will enhance the competitiveness of the market; failure to perform these functions may be eliminated. On the third day after the Ministry of Finance issued the guidance on speeding up the development of the CPA Industry in China (draft for soliciting opinions),　　From the Shenzhen stock company also came to the accounting firm industry Good news. May 10, the Shenzhen Stock Exchange held the GEM Listing Rules News Symposium, the board issued the "Gem listing Rules (draft)." SSE general Manager Song Liping said the listing rules further strengthened the powers of CPA firms. According to the rules, the opinions of the CPA firms may affect the listed companies ' listing qualifications.　　This undoubtedly brings a great boon to the accounting firms which are in a weak position in the cooperation with the listed companies. In that case, will the CPA firms, especially the Chinese-funded firms, be able to change their status with the listed companies? How can an accounting firm use a good policy? What changes will the market bring with the introduction of policies? What is the impact on accounting firms, especially Chinese firms?　　A string of questions ensued as the rules emerged.　　New mechanism, can listed companies be implemented? It is understood that the newly promulgated "Gem Stock listing Rules (draft)" Design concept, the first consideration is the basic function of capital markets, that is, optimizing the allocation of resources.　　In addition, the most important point of this rule design is that if an accounting firm produces a report that is unable to express an opinion or a negative opinion, and the listed company cannot eliminate the influence within the stipulated period, the company will enter the delisting procedure. "This policy is very good, but for Chinese firms, the weak position is more obvious, listed companies can be implemented according to this regulation, and SSE how to monitor is also the key."　　"Mr. Bow, the project manager of an accounting firm in Beijing, told reporters. "Optimizing resource allocation" Six words said more than 20 years, the Shenzhen stock has also been established for 19 years, but it is very difficult to implement. The idea of ' optimizing resource allocation ' should be based on the selection of sponsors, the due diligence of intermediary agencies, the issuance of audit reports, and the whole process of listing. "SSE's song Liping also expressed the same concern," some accounting firms are more accommodating to listed companies, listed companies are also more powerful. This time we have strengthened the power of the CPA firm, which is very important. "Some experts have also put forward their opinions, asking SSE to increase the supervision of listed companies."　　SSE's explanation is that, from the nature of the rules, it is a self-regulatory regulation of the exchange, which is fundamentally different from the national laws of the Penal Code, the Securities Act and the company law.　　Don't let the cat and mouse go wrong. In addition to enforcement efforts, the experts also pointed out that listed companies and accounting firms are also the key factors affecting the implementation of the rule. It is understood that certified public accountants and their office of the accounting firm for the Enterprise financial statement Audit, check the function,-known as the "economic police", is also regarded as the "gatekeeper" of the market economy. Independent, fair and honest financial audit report to ensure the authenticity and reliability of accounting information is its basic professional ethics. The financial judgment of the listed company by the investors can only be based on the financial audit report issued by the CPA as a fair third party. The law stipulates that the audit report issued by CPA has certain legal effect.　　However, some CPA and accounting firms not only failed to fulfill their duties, but often fell into the absurd game of "cat and Mouse". It's not uncommon for accounting firms to help fake companies.　　Its means are also diverse, including packaging virtual performance, fraud listing qualification, for the rights issue and manipulate net profit, listed companies to match the two-level market makers hype and manipulate profits, large shareholder false capital, listed companies deceive small investors, false disclosure of company information. "Some accounting firms are involved in fraud, ill, not only their own image is destroyed, from the ' economic police ' into ' rat ', but also to the public to bring great loss and harm." "Mr. Bow told the reporter," Some malicious fraud, circle money, speculation for the purpose of the listed companies false statements, false performance, false investment once through the accounting firm's ' audit ' pass, and even be ' whitewash ', then put on the ' legitimate ' coat, it is more deceptive. "The industry personage Zhang thinks, this kind of bad behavior produces has two reasons, first, some enterprise governance structure flaw restricts the accounting information enhancement, the CPA appointment system also endangers the social audit independence; Secondly, the separation of ownership and management, It inevitably leads to the serious information asymmetry between the investors and the management of the listed companies. Asymmetric information is one of the causes of accounting fraud, and it can bring adverse selection and moral hazard problem. However, in our country, there is not a listed company for fraud and retreat from the market. For a long time, the economic legislation of our country has heavy administrative, criminal responsibility and light civil liability. The legal gap becomes a major obstacle to the civil claim of small and medium shareholders.　　Accounting firms ' involvement in the fraud of listed companies is closely related to the organization structure of their limited liability system. "To solve the problem is not a success, because the rectification of financial reporting fraud is an extremely complex and arduous system engineering." Mr. Zhang told reporters, first of all, to create an effective financial reporting supply subject, the management of the "source" of the false accounts is of paramount importance. Secondly, we should increase the investigation and punishment of Certified Public accountants and accounting firms involved in counterfeiting.　　Violators of the law not only to carry out the national bulletin, so that its credibility sweeping, but also to establish a national network of electronic credit files, stain records can not sign a lifetime, serious to the revocation of the practice of qualification certificates, sentenced to its "lifelong ban." "SSE has already taken precautions, but also remind the accounting firms that they have the ability, responsibility and determination to fulfill their intermediary responsibilities, and they will enhance market competitiveness." Failure to perform these functions may be eliminated.　　SSE, a head of the press, told reporters.　Small and medium firms should move towards joint　The biggest beneficiary of the new rules is the weak position in the cooperation of the Chinese capital, the implementation of the new rules will be to help its development external motives. But its inherent flaw also limits its development, for example, because lacks the audit qualification, most Chinese firm's audit report is not recognized.　　Mr Bow believes that the Chinese firms are too small and too fragmented, lacking strength and visibility. Indeed, the CPA industry in the buyer's market, the market environment is very cruel, coupled with a strong competitor's crackdown, many small and medium-sized accounting firms are facing a severe test, many small and medium-sized firms are either merged or shut down.　　Therefore, the survival and development of Chinese CPA firms has become a problem worthy of consideration in CPA industry. Data show that in China's accounting firms, small and medium-sized accounting firms occupy the vast majority. At present, there are more than 5,000 CPA firms in China, among which more than 50 CPA firms account for only a small proportion, and most firms usually have only more than 10 CPA.　　As most of the small and medium-sized accounting firms are relatively short time to set up, governance experience is not rich, so there are many problems in the internal governance. The unfair competition between CPA firms in our country has the tendency to rise up, showing the competition among firms, denigrating peers, false propaganda, even using the means of heavy rebate, high proportion and so on to attract business. At the same time, it is a new trend of unfair competition between CPA firms that the government departments come forward to seek the designated business.　　The ultimate victim of chaos is, of course, part of the small firms that are forced to retreat from the pressures of cost and competition. "Chinese firms should choose their own position while meeting the new market environment, and the market strategy of small and medium-sized accounting firms should be clearly positioned in small and medium-sized enterprises, or growth-oriented companies." From the point of view of competition, small and medium sized accounting firms compete with large accounting firms for large enterprise customers, so it is better to use the business blind area of large firms to serve small and medium-sized enterprises, and this is the best market choice for small and medium-sized accounting firms. In their respective target market, all accounting firms are in the best condition of the market. "The general manager of an accounting firm in Beijing, Mr. Chen, said to reporters," in addition to the establishment of strategic alliances, only the industry's firms to unite, the establishment of all parties can accept the industry norms, and the relevant institutions to implement safeguards to establish a good market order, especially for small and medium-sized accounting firms, Strategic alliances have more important protection implications. "" The advantage of the Chinese firm is flexible, to make full use of this advantage, to do domestic enterprises at the same time also pay attention to foreign enterprises, ' go out ' is the only way to develop and grow, but ' go out ' is a systematic project, is definitely not a one-man exit can be done. Domestic firms should seize the time to do bigger and stronger, joint and joint, attract some returnees to join, the current most feasible is to follow the Chinese enterprises to go out.Mr. Bow said to the reporter.