Study On Auditor's Behavior & Its Economic Analysis

Recently, the fraud cases of public listed companies and the failure case of non-government audit were discovered, e.g. Yinguangxia case in china, Enron and Xerox case out china. All these cases resulted in severe complains from public and up-down in capital market. One of the Big 5 Accounting Agencies -Anderson and Zhongtianqin Accounting Agency in China become bankrupted because of their abnormal behavior. Non-government audit is faced with big challenge in its reputation and even its survival. Auditor's behavior is attracting more and more attention than never, making it one of the risky problems to be solved all over the world.Influenced and inspired by western theories on auditor's behavior, this article tries to do some in-depth systematic research on auditor's behavior with the theories of behavior science, psychology, sociology, management science, organizational behavior science and other research achievements of auditing to explore the model, standard and optimization of auditor's behavior. The main contents of the article are:1. The background and importance of the research on auditor's behavior, review of the research on auditor's behavior home and abroad, the method, main focus and structure of the article.2. Based on the analysis of the difference between auditing behavior objectives and auditing objectives, the articles reveals that the key inducive factor of auditing behavior is auditing behavior objectives, not auditing objectives. Based on the analysis, the article concluded that the key factors of auditing behavior objectives function are auditing objectives, auditing environment and auditing behavior motivation.3. Based on study of the factors of auditing behavior objectives function, the article established its auditing behavior model. First, based on the humanity hyposes theory, the article study the development process of auditing and the evolution process of the humanity of the auditing behavior subject and the complicated humanity of the auditing behavior subject in modern society. Based on the analysis of the relationship between market economy and company report chain and the role of auditing in the company report chain, and with the exploration of the essence of auditing, the article make clear the important role of auditing behavior subject in social & economic structure. Then, based on the overall study of the factors in auditing environment and focused on the key factor of auditor's behavior, i.e. the auditing relationship, the article made deep analysis on the evolution process from the ideal triangle relation to straight-line structure in reality. The change of auditing relation results in ignorance of the benefit of investors in the auditing process. The auditor's behavior is far from its social function, which results in systematic punishment mechanism such as auditing sueing case to induce auditing behavior to realize its social objectives. Finally, based on the above mentioned research, the article integrates auditing objective, auditing environment and auditing bahvior subject motivation in the auditing behavior model.4. Using modern economic theories and analysis tools, the article analyzed the economic aspects of the decision process of auditors, which reveals that abnormal company operation and management structure results in high demand for false auditing report. At the same time, the function of auditing market is weakened and even become...