The Analysis On CPA Audit Entrustment Pattern Of Listed Company In China

Many accounting scandals were exposed in developed market-oriented economy country and in developing market-orientated country in the late 20th century and early 20th century , such as Enron in America , Parmalat in Italy and YinGuangXia in China. These accounting scandals and related audit failure make the independence of CPA a focus issue all over the world.Many studies have shown that many kinds of causes lead to the absence of CPA'independence .Among these causes , the defect of the CPA audit entrustment pattern is an important institutional one .Such is the case in our country. Hence , it is very important to go deep into the inherent defect of existing audit entrustment pattern and bring up corresponding proposal so as to strengthen the independence of CPA and maintain the healthy development of young stock market in China.Because of the close relationship between the audit entrustment pattern and corporate governance, this paper try to find out the inherent defect of audit entrustment pattern on the basis of corporate governance and advance corresponding proposal. The paper consists of an introduction and four parts .The introduction includes the research background , research scope and purpose ,the research framework , the originality and drawback. Part one is a summary of literature which sum up the lately research on audit entrustment pattern at home and abroad .Part two includes two aspects. The one aspect is the theoretical base , the other aspect is the history of CPA audit entrustment pattern. Part three and part four are core content of this paper. Part three is a cause-and–effect analysis. This part firstly find out the fundamental cause---corporate governance which results in the defect of the audit entrustment pattern ,then analyze the influence of the auditing market competition on the defect of audit entrustment pattern. Part four bring forward to the proposal after the analysis on the audit committee of independent director and the representative viewpoint in the academia.The paper use the way of theoretic analysis. Case study is adopted in certain part. The corporate governance is a complicated and systematic issue, so the audit entrustment pattern related must involve many problem .Owing to the limitation of my personal knowledge , this paper may have some immature part and imperfection . Take an example, the proposal of consignment the right to choose auditor to the audit committee under supervisory board may be incomprehensive in theory and also need further test in practice . These imperfection are worthy of my in-depth study in my future.