Core Viewpoint - The recent cancellation of the registration of three accounting firms indicates the effective implementation of the newly revised "Administrative Measures for the Registration of Accounting Firms Engaging in Securities Services," showcasing the emergence of a survival of the fittest mechanism in the industry [1][3]. Group 1: Regulatory Changes - The new regulations allow for the cancellation of registration for accounting firms that voluntarily apply for it, fail to report significant events, or have false or misleading information in their registration materials [1]. - The cancellation of registration is not a permanent status, establishing a dynamic mechanism for quality control in the securities auditing market [1]. Group 2: Recommendations for Improvement - Establish a rating system for accounting firms engaged in securities services, with annual evaluations based on current performance and historical audit cases, categorizing firms into grades A, B, C, and D [2]. - Mandatory disclosure of the latest ratings for accounting firms hired by listed companies, with specific warnings for those hiring D-rated firms, and requirements to disclose audit fees [2]. - Increase the circumstances under which firms can be deregistered, including automatic deregistration for the lowest-rated firms and those with significant violations [2]. - Create a seamless transition system for audit services when a firm is deregistered, ensuring continuity in audit operations [2]. Group 3: Liability and Accountability - The structure of special partnerships in accounting firms may allow partners to evade responsibility for misconduct; thus, there is a need to clarify conditions under which partners can be held jointly liable [3]. - The cancellation of registration for accounting firms should not absolve them of civil liability, and a simplified compensation process for investors should be explored [2][3].