The ‘Exchange Trend’ of Listed Companies: There are Multiple Motivations to Be Vigilant Against

On December 20th, accounting books are like a company’s “physical examination report”, while accounting firms are the “doctors” who diagnose and diagnose. As the end of the year approaches, the group of listed companies is once again experiencing a “stock exchange wave”. According to incomplete statistics, over a hundred A-share companies have disclosed the matter of changing their accounting firms since December. For the purpose of “changing offices”, most people indicate that it is implemented to further enhance the independence and objectivity of the company’s audit work, taking into account the company’s future business development and demand for audit services. Upon closer examination of the reasons behind it, the impact of the “qualification penalty” is still ongoing, and some companies have decided to “switch offices” after careful consideration due to the suspension of their original audit institutions; Some companies have undergone a “change of office” in accordance with regulations due to the original audit institution’s service exceeding the maximum audit service period stipulated by relevant regulations. But behind the surface, there are also some companies attempting to circumvent strict audit procedures by changing audit firms, or seeking more “friendly” audit opinions. For listed companies, changing accounting firms is a double-edged sword. Industry insiders analyze that on the one hand, regular changes can maintain the independence and objectivity of auditing, and avoid the “tacit understanding” that may arise from long-term cooperation and affect audit quality; On the other hand, frequent changes may also imply differences in accounting treatment or disclosure issues between the company and the original auditing firm, and may even be a case of “changing doctors” to cover up financial problems. (Shanghai Securities News)

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