Research On Establishing A New Supervision Mode Of CPA Profession In China

At the beginning of the 21th century, the accounting information disclosure distortion of listed companies and the failure auditing of the certified public accountants (CPA) spring up on the Chinese securities market, which makes the CPA profession of our country encounter an unprecedented trust crisis and induces people from all circles of life to be questioned about the supervision mode of Chinese CPA profession. To standardize behaviors of CPA and promote the healthy development of CPA profession, in 2002 Ministry of Finance issued No.19 document to recall the administrative management right which is previously authorized to the Chinese Association of CPA, and transferred this authority to the functional body of Ministry of Finance. This marks the supervision mode of CPA self-discipline is ended, and lays a foundation for the supervision structure characterized by the government supervision as the main and the professional self-discipline as the adjunction. However, the actual effect of this measure is not as ideal as we thought, the fraud auditing of the CPA still happens more than one time, which fully reveals that the mistaken apprehension about the Chinese CPA professional supervision mode still exists and is to be clarified.In 2008, the suddenly appeared global financial crisis challenges the CPA profession of our country to be unprepared. The rate for the CPA's "indirect selection" and "moral hazard" during services will be higher than that of before. Therefore, with financial crisis, it is a good time and necessary to study the supervision mode of Chinese CPA professional supervision.This paper is divided into five parts to study the Chinese CPA professional supervision mode. The first part is about the background at home and abroad for the essay topic choosing; summarizes and analyzes the latest research achievements on CPA professional supervision mode of home and abroad; briefly introduces the study purpose, significance and content of this paper. The second part starts with the CPA professional supervision concept and characterizes; generally introduces the theoretic basis of CPA professional supervision and the currently international common used CPA professional supervision modes:self-discipline supervision, governmental supervision and independent supervision. The third part analyzes the CPA professional supervision mode represented by UK, America and Japan, and summarizes the significance for our country. The fourth part, at the basis of introduces the present status of Chinese CPA professional supervision mode, digs deep into the problems and causes existing in it. The fifth part, with reference to advanced experience of foreign CPA professional supervision modes and combining with the problems existing in the current CPA supervision mode of our country, schemes the construction principle that the Chinese CPA professional supervision mode should be complied with, and establishes a new type of CPA professional supervision mode in accordance with the principle.