Does every business have to be audited by an accounting firm?

Yes. An accounting firm is a bridge between the government and enterprises, a link between owners and operators, a third party that is independent of the government and enterprises, does not have profit as its primary goal, and has statutory social functions.

On the one hand, it is responsible for shaping the micro-subjects of the market economy and regulating the business activities of enterprises; on the other hand, it is the specific executor of the country's macro-control of the social economy.

Due to the scarcity of social and economic resources and the profit-seeking nature of micro-entity business activities, the state always implements fiscal policies, monetary policies, income policies, human resources policies and a series of administrative regulations through legislation and government formulation. To regulate the economy, the basic function of accounting firms is to standardize and adjust the behavior and operating results of market micro-subjects based on these laws, regulations and policies;

Thus, the will of the country can be used in social and economic activities. be realized, the "legal system" will transition to the "rule of law", and "ruling the country by law" will be transformed into "ruling the country according to law", bringing the business activities of enterprises into the track of the rule of law, and ultimately achieving the goal of fully utilizing and optimizing the allocation of social resources. Therefore, accounting intermediaries play an important role in the country's economic and political life and play an irreplaceable role.

Extended information:

The role of accounting firm auditing:

In the capital market, accounting firms disclose to the public the asset restructuring plan of the offering company, Information such as the use of raised funds and expected returns guides investors’ capital investment. After the stock is listed and circulated, it guides the flow of capital by announcing the operating performance of the listed company.

In the field of direct investment, accounting firms regulate and guide investment activities such as joint ventures, shareholdings, holdings, and purchases between enterprises through asset evaluation, value determination, and financial auditing. In the field of indirect investment, banks and other creditors make decisions through accounting firms' assessment of borrowers' creditworthiness and assessment of the value of mortgage assets.

Today's accounting firms have transitioned from indirect guidance to direct guidance of capital flows. The financing agency business of the "Big Five" has developed rapidly and has demonstrated advantages that other intermediary organizations cannot match. This shows that accounting firms have broken through traditional business and their functional roles are constantly expanding.

Chinese accounting firms should also act as information intermediaries between capital suppliers and capital demanders, guiding capital to advantageous industries so that capital owners can avoid risks to the greatest extent and achieve capital profitability and Unification of security.

Baidu Encyclopedia-Accounting Firm

Baidu Encyclopedia-Corporate Financial Audit (Accounting Audit Report)