Research On The Administrative Supervision Mechanism Of The CPA Industry

With the rapid development of the human society,CPA audit,as an important part of the market economy structure,is playing an increasingly significant role in keeping the market economy rules,enhancing the market efficiency,ensuring the economic system reform and improving the rationality of the social resource distribution.Meanwhile,just at the beginning of the 21^stcentury,the scandal of the CPA faking behaviors impacted on the world economy greatly,especially on the financial and capital market,hurt the confidence of the investors and public seriously and influenced the CPA industry supervision method and mode at the same time.In November 2002,the Ministry of Finance enacted the new regulation of CPA industry supervision,because the former regulation could not catch up with the practice.In the new regulation,the financial administrations at all levels,instead of the CPA association,should take responsibilities of the supervision on the CPA industry.While the CPA association is converted to an independent industry organization.With the Ministry of Finance taking the responsibilities of the CPA industry supervision,the new regulation enhances the administration ability,recovers the public confidence on the industry and promotes the healthy development of the industry.But there are still many problems in the administration supervision and further research is necessary.These problems are the lack of the law environment,the lack of the specific supervision method,the lack of the coordination between different governmental departments and so on.How to find an effective supervision mechanism has been one of the hot research topics in the CPA industry all through the world.To establish the administrative supervision mechanism of CPA industry,firstly we should define the authority of the supervision department.Administrative supervision should focus on the region that government could be effective or the supervision cost is lower than the proceeds.Secondly,we should change the government function in mechanism way to root up the faking behavior of CPA.Thirdly,we should coordinate the relationships among the enterprises,CPA firms and the government,so as the relationships between different supervision departments.Fourthly,we should amend the laws and regulations which are not suit for the administrative supervision.Fifthly,we should define the specific ways and contents of administrative supervision.Nowadays there is lots of research on the CPA industry,but most of them focus on a specific area and not in the holistic way.This article, based on the background that administrative supervision mode of CPA industry in USA and UK has changed greatly and china had entered the WTO with the accounting internationalization,would analyze the china CPA industry with the administrative supervision experience of the western countries,the compare-analyze theory,system-flux theory, information-unsymmetrical theory,controlled theory,and focus on the laws and administrative supervision mechanism,in order to improve the supervision efficiency and promote the legal administration.Through the theoretic and practical analyze on the self-discipline and administrative supervision of the CPA industry,it can be concluded that law-regulation,administrative supervision and self-discipline are the comprehensive supervision mechanism of CPA industry in China nowadays.In the article,there are researches to some extent on how to supervise moderately and how to establish the daily supervision mechanism,the examining mechanism,the administrative punishment mechanism and the coordination mechanism.