The Research On The Auditor Reputation

The reason why the independent auditor is entitled to attest the credibility of the information for the public is that, the auditor promises to conform himself to the inherent trust in the commission relationship. So it is the auditor's important duty to maintain the professional reputation when he performs his commissioned obligations. Under the circumstances that no matter in abroad or internal the independent auditor is confronted with a critical situation to win the public trust again, the research on the auditor reputation is of practical significance.Two traces are followed in this paper when exploring the theoretical and practical problem about auditor reputation. One is begun with the discussion on the basic concept: reputation. Combined with the comprehension about reputation, we define the implication, classify and essential content of auditor reputation, and conclude the total performance of auditor reputation's effects on the overseas mature capital market and of the CPA firm's reputation. As regard to the great urgency to impel the auditor reputation investment in today's China, we emphasize the necessary and its influential factors of auditor reputation building and maintaining, and bring up some suggestions to improve the investment circumstance. The other trace is begun with the definition of the reputation mechanism. Combined with the comprehension about reputation mechanism, we analyze the general components and ideal features of auditor reputation mechanism, and compare the characters and merits of two different kinds of auditor reputation mechanism: the personal enforcement and the social enforcement. We find the personal enforcement has an inherent paradox, so there is a tendency for the personal enforcement transits to the social enforcement.We also apply the conclusions to inspect the phenomena of auditor reputation on Chinese capital market, and conclude the present situation of auditor reputation. Based on the analysis of the external and internal factors that prevented the building and improving of auditor reputation, we raise some advices to ameliorate Chinese audit market's conditions and promote more investment on auditor reputation.