Certified Public Accountant Audit Quality Of Listed Companies In China

With the frequent exposures of false accounting cases of those listed companies such as Qiongminyuan,Hongguang,Dongfangguolu and Yinguangxia,the audit quality of CPA in the listed companies in our country has become a more and more grievous problem which we cannot ignore any more. The fair foundation of the capital market,the confidence of the investors and the operating mechanism of corporate governance have all been threatened,and the survival and development of the CPA firms are faced with an unprecedented challenge. Taking the value of CPA audit quality as its theoretical basis this dissertation attempts to investigate the status quo of CPA audit quality of the listed companies in our country and the main contributing factors thereof,and accordingly,construct ways to improve CPA audit quality of the listed companies in our country.This dissertation consists of the following four chapters:Chapter â… . Introduction. This chapter introduces the subject and scope of this dissertation,the main related concepts,and the development of thoughts and the approach of this research .Chapter â…¡. CPA audit quality of the listed companies in our country:value analysis. This chapter gives a full and systematic analysis on the value of CPA audit quality of the listed companies in our country from three perspectives:the capital market,the corporate governance and the CPA firm. This is the theoretical basis of this research.Accounting information is an important component in the information disclosure of the listed companies. It not only lowers the degree of unbalance among the capital market participants in their acquisition of information,but also helps to realize the role of stock prices as a reliable index to measure the actual value of a company,and,as a result,reduces the risk of the investors and realizes the normal operation of the capital market. Since there are conflicts of interest between the authority of the corporate management and the users of accounting information,it is hard for the management authority as the "producer" of the accounting information to be objective,and this might lead to a greater unbalance in the distribution of accounting information,the distortion in the role of stock pricing as an index for the value of a company,and a higher risk for the investors. The CPA audit,therefore,in terms of both its inward demand and outward pressures,has the function of certifying the value of accounting information. Since the audit opinion of the CPA has an "economic effect," different audit qualities may change the distribution of interest among different participants in the capital market. This shows that the CPA audit quality plays an utterly importantrole in the stabilization and improvement of the capital market.The separation between the ownership and the managership in a company gives rise to the problem of agency. In terms of its mediating mechanism- the corporate governance,especially the stimulating mechanism ( the making and applying of the management reward contract in particular ),there is a natural relationship between accounting information and corporate governance. Since the manager intends to get a higher reward,he has the motivation and condition to manipulate accounting information. The high-quality CPA audit in this sense can not only reduce the probability of the manager's manipulating the accounting information,but also helps to realize the stimulating role of the management reward contract.,and promote the efficiency of corporate governance.The CPA firm is the main body for audit business and a professional organization for CPA's. In the market economy,the CPA firm as a main body for market competition is an economic entity that has its independent property right,and the relevant responsibility,and aims at its maximum economic interest. The CPA audit quality is both the foundation for the interest of the CPA firm and the guarantee for the reputation of the firm. It also serves as an effective measure to lower the audit risk. The CPA audit quality is the life of th...