Research On Regulating CPA Behavior In The Security Market

Establishing security market has very significant implications for socialist market economy in that security market facilitates the process of raising capital, optimizes resources allocation, reforms industrial structures, enhances operations and so on. Within security market, Certified Public Accountant ("CPA") plays a more and more important role to maintain the fairness and proper order of the market. Therefore, how to regulate CPAs becomes a meaningful topic. It is also the focus of this thesis, which addresses the topic from three perspectives: What the importance of regulating CPAs is; Who should be in charge of the regulations; How to implement the regulations.Follow this method, form Institutions devising, we analyzes the co-existence relationship between market economy and CPAs. On the one hand, the establishment and development of security market serves as the stimulus for CPA profession. The CPA profession grows and prospers out of the ever-increasing needs for the market to function systematically, effectively and fairly. On the other hand, as an"economic person", CPA's behavior follows general economic rules too, but with its own distinctions. It is very important to analyze the distinctions in order to identify the unique patterns and rules upon which CPA profession functions. Understanding these patterns and rules will be crucial to come up with practical measures to regulate CPA profession for the benefit of the security market.And then, discusses which entity should regulate CPAs. Generally speaking, the regulator would be either government or CPAs themselves. But in socialist market economy, who should take the charge? Due to both government policy failure and market failure, either way won't completely solve the problems CPA profession faces. The third way, which is to establish a balancing mechanism between government regulation and CPA self-discipline, might be the option to build up a properly functioning CPA professional organization.In the market, the price is basic information carrier reflected the product (or service) the supply & demand condition, the effective pricing system should realizes the social resources order flowing and the element of production rational distribution. Under the"effective"mechanism, the service price (i.e. audit charge) is able to manifest the grade of service information (high quality and favorable price), and can realize in the audit service market superior win and the inferior wash out. This article will exam defection of CPA behavior, by taking the stock market audit charge data as the major targets or quotas, through carries on the observation to the sample data. At the same time, the article design and the analysis questionnaire survey, further analyzes the influence by external stimulation factor to CPA's demand.Finally, this article will profit from the institutions economic general theory, analysis and the appraisal to the present related institutions and regulation, then provides the policy basis to further regulating CPA behavior in the stock market.