A Study On The Audit Independence Based On Multiprincipal-Anget Relationship

The audit originated from commissioned economic duty,along with the development of joint stock system, the demander of the audit report not only was property owner, but increasingly extended to the investor, the creditor, the public, government and other persons who are correlated with the interests. Those financial reports which are audited can help to create correct economic decision-making. We can improve audit quality through improving audit competence and audit independence. This paper from the angle of audit independence view researches how to improve audit quality, hypothesizes that the entire auditor are competent for the job. It is obvious that independent audit is the key to improve the audit quality. The independence is the auditors' soul and the base of the profession and operation. Until the end of 2005, up to 90 percent of the CICPA disclosured audit failure cases due to lose of audit independence, from this we can conclude that audit independence is more important than audit competence in assuring audit quality, so study the audit independence has a significance of both theory and practice.The up-to-minute study results of audit independence at home and abroad are greatly accepted and developed in this thesis. Based on the analysis of theory, it does established the multi-logistic regression model which can evaluate the degree of the audit independence, based on the model outcome, auditors with high audit independence take part in the bidding which organized by stock exchange, achieving the aim of controlling the audit independence from source.Firstly, the origin and development of the audit are analyzed. At the same time, it emphasizes the significance and value of this study. Then it analysizes the factors which affect audit independence and the current methods used in detail from the theoretic view. The emphasis of the thesis lies in the positive part, the aim of this part is to control the audit independence from the beginning. In this process, Factor Analysis, Logistic Regression and Game Theory have been applied. Finally; it summarizes all viewpoints and gives a set of policy suggestions.