The Discussion About The CPA Audit Commission Model Of The Listed Companies

In recent years, no matter international or domestic, listed companies accounting fraud scandals happened one after another, a large number of investors suffered huge loss, and made serious damage to the reputation of the capital market and the credibility of the listed companies. For the financial fraud accounting fraud, it can be not only from the existing system and corporate governance structure to analyze the causes of the financial fraud, but also from the supervision of the listed companies of CPA auditing to find the financial fraud causes and solutions. The listed companies' supervision of CPA audit focused on the independence of CPA audit. A large number of studies have shown that there are many reasons lead to the loss of CPA audit independence. The shortcomings of auditing commission model are the major reasons for the system. Therefore, to enhance our companies audit independence, maintain the healthy development of our country and to promote sustained and orderly development of our securities market, we must study the CPA Audit commission model of the listed companies and put forward recommendations for improvement.At present, the theorists have different opinions about the choice of the CPA audit commission model. However, in practice the Audit Committee Model is the better one. To find out the problems of our CPA audit commission model, this article described the basic theory and analysis of the premise of it, and make a deeper cause analysis of the problems, and then make recommendations. Specifically, this paper can be divided into five parts:The first part is an introduction. First of all, it explains the background and significance of this paper, lists the important domestic and international research literature and conducts a comprehensive review, explains the main ideas of the writing and research methods, and lists the basic framework of the paper.The second part consists of two aspects:the first aspect describes the basic concept of the CPA audit commission model; the second aspect describes the theoretical basis of the CPA audit commission model. In the basic concept, it explains the meaning of CPA audit and the meaning of the CPA audit commission model. In the theoretical base of the CPA audit commissioned model, mainly from the principal-agent theory, property rights of economic theory and supply and demand theory to describe, and analysis relationship between that three theories and the CPA audit.The third part is to analyze the problems of the CPA audit commission model of the listed companies, and gain the causes of them. These problems include that the principal part of the CPA audit commission is not clear, the CPA audit fees and the payment are not scientific, the supervision and evaluation system of the CPA audit is imperfect, the independence between the CPA and the audited entity is not enough. The main reasons for these problems are the corporate governance flaws and the right of the commission shift, Audit buyer's market characteristics and the accounting firms lack of independence, the laws and regulations of the CPA audit are imperfect.The fourth part discusses three kinds of CPA audit commission model in theory and practice. These three kinds of models include:the Securities Regulatory Commission Model (SRC model), the Financial Statements Insurance Model (FSI model) and the Audit Committee Model. On the basis of discussing the ideas of the construction and the superiority of the three models, this paper analyzes the defects of them. The defects of the SRC model are that we can not determine whether the SRC has the demand for real accounting information; and because the right of the SRC is large, if we give the supervision right of CPA audit commission to SRC, it will inevitably lead to an expansion of the commission power. The defects of the FSI model are that:firstly, the theory is based on semi-strong form efficient stock market, but our stock market does not reach semi-strong form, therefore, in essence, our country can not play the significant advantages of the FSI model; secondly, in practice, the FSI model is lack of compulsory; lastly, is that our insurance industry may not have the capacity nor the courage to undertake the acting principal deputy of the CPA audit of listed companies. The defects of the Audit Committee Model are that:first of all, interests relationship between the independent directions in listed company's audit committee and the company is not strong, independent directors is not the demanders of the true information, so the independent directors of the audit committee do not have a strong enthusiasm and initiative when they are in the discharge of its functions; secondly, scholars suspect that the independent directors may be driven by the interests of the inside executive directors of the listed companies, so it may be possible for the inside directors and independent directors to collusion. On the basis of the analysis and compare the three models on above, the Audit Committee Model is the best choice.The fifth part is to discuss the Audit Committee Model. This part in view of the problems and causes of the CPA audit commission model of the listed companies, learns from some of the practices specified in the U.S. "Sarbanes-Oxley Act", and this part presents the construction of the Audit Committee Model, and by increasing the independence of the audit committee, improving the relevant laws and regulations to improve the CPA audit commission model of listed companies in China.