Governance Tactics Of The Audit Collusion In Listed Company

The happening of auditing collusion destroys the independence and objectivity heavily that are needed in auditing work. And it also seriously mislead Decision makers,infringe upon the rights of the others, damage the stability of the securities market. So what can we do to control auditing collusion?To find how to get auditing collusion, this chapter establishes the game model of auditing collusion, and analysis the game between listed companies and public accountants ,then get the conclusion, that only if (D-K-F+L+C)÷(Z+J+z+j)≥q established , they would like to participate in auditing collusion.By what I found befor,it is easily to found that there are some reasons for auditing collusion. The first is negative regulation of CPA industry, mainly reflected in, a number of government departments monitor functions of the cross. and the punishment is too light, and so on. The second is the reasons of listed company, mainly reflected in, the Board of Directors, Supervision Committee and Audit Committee are lack of independence, and the right of employ CPA dose not give to the right department. The third is the reason of CPA firm, mainly reflected in, many CPA firms are limited liability company, and the size of them are very smallBy analysis above, the chapter gives some advice to control auditing collusion. The First is external supervision measures, concluding, depriving the supervisory power of the Ministry of finance, and giving it to State Auditing Administration; Securities Regulatory Commission still perform the right of supervising listed companies, but It must accept the audit of State Auditing Administration, and so on. Second is the measures of listed company, concluding, improving the corporate governance structure, increasing the independence of the board of independent directors, abolishing the system of Audit Committees, and advancing Supervision Committee, and giving the right of employ CPA to Supervision Committee. The third, is the measures of firm-level, including improvement of firm organizational structure and promoting size of the firm.