The Analyse Of Reason And Countermeasure About Auditing Collusion

CPA's audit function , which is the basic of the normal operation of the capital market. However, many of the financial reporting fraud cases in recent years are involved in a certified public accountant. Auditing Collusion become a normal economic phenomenon. Its existence in China's auditing market has caused serious harm. It also seriously damages the image of Chinese accounting firms. I hope that through the research about audit collusion to provide some of valuable countermeasure to prevent and manage it.This paper introduces the research background and significance firstly. Recalled the study of the past through learning from experts results to explain the contents of the audit collusion and audit collusive behavior. According to the current status of China's auditing market, summed up the characteristics of the auditing collusion.Through collecting, contrasting the notices of the penalty published by the Audit Commission and China Securities Regulatory Commission, the paper introduces the audit collusive behavior in the current situation and shows that there are many reasons for collusive behavior, both external factors and internal factors.The research shows that the collusion has the characters of being avoided and undelted, so in this article the effective control of collusion is to tightly execute related regulation, policy and law. The suggestion presented in the paper is that founding an auditing administration committee, obeying moral, improving contract system and toughly controlling legal liability can reduce the probability of auditing collusion effectively.