Study On Establishing The Independent-regulation Mode Of CPAs Industry In China

The system arrangement of separation in corporation ownership and operation causes the creation of CPAs industry, however the non-symmetry distribution of accounting service quality in CPAs industry will result in "adverse selection" and "moral hazard", so it is the inevitable selection to supervise the CPAs industry, control the action of the CPAs and enhance service quality of the CPAs industry. It is necessary to research into CPAs industry regulation mode in China because of a lot of accounting fraud breaking out of listed company from the domestic and international security market and the renovation of CPAs industry regulation mode in the last few years. This essay makes the first step into selecting and establishing the CPAs industry independent-regulation mode in China and it perhaps benefit for the CPAs industry which is in the period of renovation.This essay tries to attest the CPAs industry independent-regulation mode in China from the theories and practice. The CPAs industry regulation mode means that regulators control or intervene into the micro level of CPAs industry, and there are self-regulation mode, independent-regulation mode and government-regulation mode. The object of the regulation involves the micro level of CPAs industry. Self-regulation mode is the result of fair competition in the principle of liberalism, it is powerful and just - in - time, but it is in the clash of "spokesperson" and "supervisor"; The government-regulation mode is authoritative and compulsive so it is favored by the junior market economy nations, but it is with serious bureaucracy and no efficiency; The independent-regulation mode absorbed the merit of the self-regulation mode and the government-regulation mode, it is the combination of market force and state force. Theoretically speaking, the independent-regulation mode is super mode in CPAs industry.It is not reasonable to establish the independent-regulation mode in China only from the theoretical analysis. What our country CPAs industry adopted is classical government-regulation mode, Ministry of Finance, China Securities Regulation Commission, Commerce and Industry Bureau and Taxation Administration etc all hold the right to supervise the CPAs industry. The government-regulation mode of CPAs industry in China has the defects of the mistaken aim, the scant quality requirement, over-regulation of several departments, serious protection of local government and scant function of China Institute of Certified Public Accountants etc. Because of the rights arrangement and allocation of several departments, the renovation can hardlyexterminate these blemishes within the scope of originally frame.Jumping out the rotation of "regulate more more disorderly, more disorderly regulate more" in the government-regulation mode, it is necessary to reform the CPAs industry regulation mode of our country. However our final selection is not self-regulation mode, Britain and America have adopted this mode for a long time, the actor conflicts and independence of self-regulation mode finally cause the renovation of CPAs regulation mode and the breaking out of Enron affair in the United States. The regulation mode renovation in Britain and America provides us good consults that the CPAs industry can't depend on the self-regulation mode completely.So the CPAs industry independent-regulation mode of our country is the result of theoretical analysis and the counter-evidence of practice. The aim that protecting social public interest is the logic point of the independent-regulation, the principle is that drawing lessons from the international experience etc. The core of the independent-regulation mode consists in the frame design, and there are some measures to regulate the CPAs industry. In the system of independent-regulation mode of CPAs industry, it is essential that the establishment of regulation institute, the arrangement and requirement of person and the expenditure. There are three right institutes such as the Quality Control Committee, the Standard Committee and the Discipline...