Research On Audit Market Order Under The Conditions Of Transitional Economy

In the practice of China's economic transition from a planned economyto a market economy, China formed a unique and progressive economictransition road gradually, presenting the main features of a industrializationand market-oriented with the double transition institutional reform within thesystem combinedwith promotingoutsidethe system,theuniversalizationofthe two-track system and under the guidance of the government , both of thisprompted the audit market disorder and confusion in the period of China'seconomictransitionhaveahistoricalparticularity.AlongwithChina'seconomicreformandmarket economicdevelopment,China's audit market has restored and developed gradually. As a product ofeconomic transformation, like the economic transition, audit market uses themarket economic system as a frame of reference. In other words, China'sauditing market basically moves the audit market mechanism under thestandardized market economic environment directly operated in China'seconomic environment .At the same time, China's ongoing economictransition is an exploration process, the audit market mechanism formed inthis process varying with the normal conditions. Therefore, the reality ofChina's audit market will be running in a fairly long period of economictransformation, standardized in the instability market environment, and itsdevelopment will also completed in all the contradictions and solve variouscontradictionschanges.Thisdevelopmentwillformarelativelystablepatternin a certain period. Especially after China's accession to WTO, China's auditmarket is graduallyintegratingintotheworld audit market,theopeningup ofChina's audit market and institutional arrangements and the related strategywill be a real and urgent problem to China's audit market. In view of theabove, this article research on the order of the audit market in the context oftransition economies, with a view to reveal the root causes of the confusion of the China audit market, to find a permanent cure and provide policyrecommendationsforrectifiedourauditmarket.Researchingontheoperationoftheauditmarket undertheconditions ofeconomic transition, putting the audit market to the entire market economicframework, we can deepen the audit market and the market economyenvironment interdependent relations. As the audit market anomie will notonly affect the quality of auditing and market performance, and will alsoaffect China's audit services in international competitiveness. At present,China's market is at apreliminaryprocess ofthemarket-oriented,researchingon the confusion of China audit market under the conditions of institutiontransition ,from the root system on the in-depth analysis of the audit marketdisorder and find the reasons for the radical measure, not only can regulatethe development of the audit market, inhibition of false accounting, reviveinvestor confidence and to ensure the healthy development of the capitalmarket, but also to make up for the audit market institution defects andimprove audit quality and market performance and promote theinternationalization of our audit market and standardize the order of Chinaauditingmarket.The domestic and foreign scholars have researched the audit marketfrom multi- angles, but theyhave not took the audit market order as a specialtopic research. This paper reviews the literature about the theoryof transitioneconomic, theory of the market order and the related literature of our auditmarket order, through review of the literature reflects domestic scholars areunable to explain the phenomena of our audit market disorder based on theinstitutionbackground.This paper first put forward the meaning of audit market order whichderived from the meaning of the order , and further pointed out that the auditmarket order the covered by four areas : the main order, trading order, therule of law and the moral order. Depending on the theory of Institutional Order, this paper further analysis the effect of audit market institution to itsorder.Alongwiththe transformationofour economicsystem,theaudit markethas a lot of problems: there are shortcomings in the main order that the orderdoes not regulate trade, the rule of law order is imperfect, moral order couldnot be the effective added of the legal order. Which the reason was mainlyduetointhetransitionperiodofChina,auditmarketexistthephenomenonofvarying degrees of market failure, government failure ,the formal institutionfailure and the informal institution failure . In this paper, "Jiarui newmaterial" audit failure is in further perspective to analysis the disadvantagesabout themainorder,tradingorder,theruleoflawandthemoral orderoftheauditmarket.As a result of institution decide the order, in order to improve China'sauditingmarketdisordersituation,constructsthegoodauditmarketorder,thekey is must construct the reasonable system arrangement. Therefore thispaper propose that remolds the audit market order through the institutionreform, correctly processes the good government role and CPA's role in theaspect of formal institution arrangement ,and sets up the concept oflaw ,cultivates the market economy spirit and strengthens audit marketoccupational ethics construction in the aspect of informal institutionarrangement.The characteristics of this paper is using the institutional order as a newtheoretical perspective to research on the audit market order and put forwardthe connotation of the audit market order under the meaning of the ordinarycontent of the order. In the same time, this paperdefines the subjects of auditmarket competition order as the main order, transactions order, the rule oflaw and order in the moral, the four aspects of the text, to pave the way forfurther analysis of the theory. And use the proposition of institutiondetermines the order, along with new economic theory and economic transformation theory and combining with standardized methods and thetypical case of audit failures to analyze the existing problems of China'sauditing market in the main order, trading order, the rule of law and moralorder under the conditions of economic transition. And from the perspectiveof economics discuss China's auditing market disorder causes, puttingforwardthatviainstitutionalreformtoremodelourauditmarketorder.