The world's four major accounting firms have controlled the accounting and auditing industry in China, and it is hard to say that some problems in China enterprises have nothing to do with it.

Many of our large enterprises and banks have no business secrets.

China's current financial risks, in addition to the financial market risks that are generally concerned, are generally ignored. Information is a key factor in the information age, and financial information is a scarce resource in the financial market. An effective financial information can make the financial market ebb and flow, and the related wealth can be redistributed in an instant. Therefore, effective financial information is not only a general essential resource that financial regulatory authorities, financial institutions and investors are striving for, but also a strategic resource for competition between enterprises and countries. International financial institutions and financial powers do their best to obtain effective financial information through various channels.

China's financial information security is facing an increasingly serious threat, which is manifested in the following aspects: the world's four major accounting firms have controlled and tried to monopolize China's accounting and auditing industry; the three major rating agencies are actively exhibiting in China, and international investment banks have monopolized the consulting and underwriting of overseas listing of Chinese-funded enterprises. The introduction of international strategic investors has made the investment and business activities of Chinese-funded financial institutions almost impossible to protect. Due to the limitation of space, this paper only focuses on the influence of the four major accounting firms on information security in China.

For a long time, the relevant authorities and enterprises in China have been seriously lacking in self-confidence, worshiping the "Big Four" and trying to establish credibility in the domestic and foreign markets with the help of their so-called "excellent reputation". However, the audit practice shows that there is no evidence that the Big Four can provide higher quality audit services.

As early as 20001year, in the announcement of accounting information quality spot check published by the Ministry of Finance, KPMG was informed criticism because of the distortion of accounting statements of Sinopec Henan Branch and Guangxi Yuchai Machinery Co., Ltd., and in 20001year, an internationally renowned accounting firm became the defendant in China because of the Jinzhou Port incident. Ernst & Young was widely criticized for its 2004 CAO Incident Risk Manual. In 2006, Ernst & Young released the Report on Non-performing Loans worldwide, and after being sternly refuted by the Chinese side, it announced the withdrawal of the report, acknowledging that the estimate of the amount of non-performing loans in China's banking industry was "unfounded and a mistake". In 2005, the Ministry of Finance announced a routine inspection announcement on the quality of accounting information, and PricewaterhouseCoopers was ordered to rectify due to the problem of Huangshan Tourism, a listed company. Subsequently, PricewaterhouseCoopers was brought to arbitration by G Waigaoqiao for oversight, demanding that the audit responsibility be investigated and huge losses be compensated. Deloitte was deeply involved in the "Kelongmen" incident, and was widely criticized for its inadequate audit procedures in the audit process of inventory, accounts receivable and sales revenue, and became the focus of litigation because Kelon was insolvent. In addition, Deloitte has constantly defended its innocence in many audit matters such as SMIC, Gujinggong and Skyworth.

Many domestic obsequious people are very good at self-dissection, and think that the integrity problems encountered by the Big Four in China are rooted in China's imperfect judicial system, bad social atmosphere and general lack of integrity, which inevitably leads to the situation that "Huainan is an orange and Huaibei is a bitter orange". Although the spirit of self-dissection is commendable, it is really not advisable to belittle yourself. As monopoly capital, the "Big Four" are profit-seeking and profiteering in nature, which does not vary from country to country. In fact, the myth that the "Big Four" is "independent, objective and fair" in the United States and the western world has long been debunked.

The Accounting Supervision Council of Listed Companies, which was established in the United States after the Enron incident, conducted a spot check on the audit business of the Big Four from June to1February 2003, and found a large number of audit errors. According to its report, "the Big Four accounting firms wrongly made some clients underestimate their debts and distort their financial status in their accounts in 2003" and "misinterpreted a standard that has been in existence for nine years". The chief accountant of the US Securities Regulatory Commission said that all the Big Four need to improve their audit quality.

When Andersen was in crisis, its CEO Bernardino wrote this sentence in a letter to employees: "We are not the first and will not be the last big organization to get into this dilemma."

After the Big Four entered China, they maintained good relations with relevant government departments in China through various public relations activities. In particular, through cooperation with the government, we will closely link ourselves with the regulatory authorities. Deloitte has been involved in the formulation of China Accounting Standards by the Ministry of Finance as a project consultant since 1993, and has been assisting the Ministry of Finance to promote this development plan for a long time. In addition, Deloitte also has close cooperation with State Taxation Administration of The People's Republic of China, SASAC and other government departments. China Institute of Certified Public Accountants also hired four accounting firms to draft the Risk-oriented Audit Procedure, so as to "build a more perfect policy system". Since 1995, Ken Siu, the chief partner of KPMG Shanghai, has served as the foreign expert consultant of China's accounting auditing standards, and Qiu Jiaci, Ernst & Young's partner in China, has served as a member of the audit committee of CSRC. Because of the close relationship with government departments, the "Big Four" have little supervision in China, so they can easily seek more and wider interests.

Many countries and regions have formulated relevant measures to restrict foreign-funded accounting firms from exhibiting in China. For example, Taiwan Province imposes strict restrictions on foreign-funded accounting firms, and accountants of foreign-funded accounting firms must obtain local qualifications before they can practice. In addition, India also requires foreign firms to be reviewed by local firms after doing business as listed companies. Japan, South Korea and other countries also take protective measures against local accounting firms. However, it is rare in the world for many government departments like China to maintain such a close relationship with the institutions of a country that has always been unfriendly to China and enjoy a variety of "franchises". Perhaps it is precisely because of this rare relationship that the regulatory authorities in China would rather sacrifice the interests of their own institutions to please and meet the needs of this special group. With the help of relevant regulatory authorities in China, the Big Four almost monopolized the auditing business of large enterprises in China, especially financial enterprises and multinational enterprises. The "Big Four" also obtained high monopoly income because of this "franchise". Research shows that it is normal for the same audit project that the fees of "Big Four" are 2 ~ 5 times higher than those of domestic ones. Take Beijing, which has the highest charging standard, as an example. The director and deputy director accountants of domestic firms charge 300 yuan every hour, while Ernst & Young charges 2,750 yuan. With the acceleration of merger and acquisition of audit firms, the industry concentration will become higher and higher, the advantages of the "Big Four" will become more and more obvious, and the monopoly profits will become larger and larger.

The nature of transnational monopoly capital is to obtain huge profits and implement control. Control is to obtain huge profits better and more stably, while huge profits are more convenient and conditional to implement control. The "Big Four", whose monopoly position in China is constantly strengthening, not only obtains rich market profits, but also obtains more strategic resources-information. Large enterprises audited by the Big Four, especially financial enterprises, are related to the economic lifeline of China. These enterprises are completely audited by the Big Four, which undoubtedly exposes important data of China's economy to foreign investment. According to a manager of Bank of China, during the audit of the listing of Bank of China, the senior management of Bank of China specially instructed all departments to provide all available information for PricewaterhouseCoopers, and many of the information was originally kept secret from their own researchers. Not only that, but also the "Big Four" design the enterprise reform and financing mode. For example, PricewaterhouseCoopers has planned the corporate governance mechanism and comprehensive risk management reform roadmap for China Industrial and Commercial Bank for the next eight years, which means that the core competitiveness and weaknesses of enterprises are unreservedly displayed to foreign investors. In recent years, China's "going out" enterprises have repeatedly encountered difficulties, and huge economic losses have occurred from time to time. Relevant professionals believe that on the one hand, it is because we lack experience; On the other hand, I am afraid it is also the most important aspect, that is, our enterprise has no business secrets to protect. Foreign investment auditing, rating, consulting, underwriting, strategic investment and management consultants have enabled China enterprises and even some government departments to operate in a nearly transparent state.

Since last year, the China stock market has been running like a wild horse, and the risk of rapid expansion is increasingly disturbing. Some insiders pointed out that a considerable part of this is attributed to "accounting innovation", that is, listed companies can legally cross-hold shares and boost stock prices.

You can also talk about the graduate student who died in the Big Four recently.

There is also a foreign company's "women are used as men and men are used as animals".