Core Viewpoint - The article emphasizes the need for a compensation mechanism for small investors affected by financial fraud and fund misappropriation by major shareholders and executives of listed companies [1][2]. Group 1: Suggestions for Small Investor Compensation Mechanism - Administrative fines for financial fraud and fund misappropriation should be paid by responsible major shareholders and executives, not the listed companies [2]. - Fines imposed on major shareholders and executives for financial fraud should be allocated to a compensation fund for small investors instead of being paid to the national treasury [2]. - Upon verification of financial fraud and fund misappropriation leading to delisting conditions, the shares of the responsible major shareholders should be frozen to compensate small shareholders [2]. - The process for filing cases related to delisting should be simplified, allowing for the extension of civil liability to the personal assets of major shareholders [2]. - Dividends and bonuses previously distributed to major shareholders and executives responsible for financial fraud should be reclaimed for the compensation of small investors [2]. Group 2: Recommendations for Audit Independence - The article suggests banning the practice of accounting firms preparing financial statements for listed companies to ensure the independence of auditors [3]. - It is recommended that the Ministry of Finance and the China Securities Regulatory Commission jointly issue a directive to prohibit accounting firms from preparing financial statements for listed companies [3]. - The article advocates for improving the penalty mechanism for accounting firms to enhance audit quality and promote the healthy development of the accounting profession [3]. - A "light penalty on firms" policy is suggested, focusing on holding individual partners and auditors accountable for significant audit failures rather than imposing severe penalties on the firms themselves [3].