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Research On Independence Of CPA's Audit

Posted on:2006-05-25Degree:MasterType:Thesis
Country:ChinaCandidate:G Q WuFull Text:PDF
GTID:2156360152483278Subject:Accounting
Abstract/Summary:PDF Full Text Request
High quality audit is an important factor to the efficiency of capital market; however, the quality of audit is synthesized by both the auditors' professional capacity (probability of detecting commission and fraud) and their independence (probability of disclosing detected commission and fraud). The social status and professional reputation of CPAs depends mostly on whether the CPAs can maintain their independence in order to offer their fair audit service all the time. Therefore, independence is the soul of CPA's audit. Ever since the arising of audit profession, there is a consistent effort to explore the problems of audit independence among CPA profession, regulators of CPA profession and the academies. Due to the Enron scandal and the audit failure of Anderson, the audit independence was again put into spot of the world. The independence of CPA's audit and the value of this profession are doubted commonly. In view of this problem, the author tries to do a systemic study on audit independence, hoping to offer some references and experiences to our reform. This dissertation limits its scope to the independence of CPA's audit and mainly adopts normative research method, using positive research conclusions to support its standpoints as possible in the meanwhile. This thesis is divided into five parts: Chapter 1 aims at the meaning of audit independence,and some explanations about maintaining and enhancing the audit independence based on some economic theories; Chapter 2 analyzes audit appointment right how to affect audit independence, and concluding that audit appointment right should belong to the demander of true accounting information; Chapter 3 introduces financial statement insurance and analyzes how to maintain and enhance the independence of CPA's audit; Chapter 4 researches on structure of audit market how to affect audit independence, and suggests developing oligopoly audit market in china; Chapter 5 suggests strengthening the trade supervising to enhance audit independence at macroscopic level.
Keywords/Search Tags:Audit independence, Audit appointment right, Financial statement insurance, Structure of audit market, Market concentration ratio
PDF Full Text Request
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