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[ Judging from past penalties, “qualification penalties” are not common. According to Tonghuashun data, in the past five years, only Dahua Law Firm, Tianzhi International, Zhongtian Huamao, and Shenzhen Tangtang have been subject to “qualification penalties” by the CSRC. ]

Strict supervision of capital market intermediaries continues to intensify. Following Dahua, another accounting firm was subject to a "qualification penalty" by the China Securities Regulatory Commission this year.

Recently, the punishment result of Baker Tilly International Certified Public Accountants (hereinafter referred to as "Bai Tilly International") was implemented. Because it failed to perform due diligence in the audit of Qixin Co., Ltd.'s annual report, produced and issued an audit report with false records, and forged, tampered with, and destroyed the audit working papers, Baker Tilly International was fined six times the amount by the China Securities Regulatory Commission and suspended from securities service business for six months.

Liu Chunsheng, associate professor at the Central University of Finance and Economics, told Caixin that the root cause of audit violations is that some accounting firms have ignored the requirements of audit practice quality and independence in order to compete for market share and pursue economic interests. At the same time, some practitioners lack professional quality and professional ethics, and the internal management of accounting firms is imperfect, which makes it difficult to ensure the quality of practice.

According to many interviewees, the severe punishment of audit institutions will lead to business loss, limited bidding, reputation crisis and many other impacts. Under the strong supervision such as increased penalties for violations and fee restrictions, the accounting industry will be forced to improve the quality of practice and strengthen internal management. At the same time, changes in market share will also have an impact on the industry's competitive landscape, promoting the survival of the fittest and standardized development.

Qualification penalties are not common