Studies On Audit Independence

Conventional audit service has been played an absolute predominance role in the service configuration of CPA firms for a long time. CPA has built up a visualization of "economic policeman" which represents independence, impresonality and equity. In recent years, However, the competition of accounting industry become fierce, Companied with the steady increase of the revenue in non-audit service (NAS), NAS has taken the place of audit and become the "leading role" in the business system of CPA. However, Companied with listed companies' scandal, especially collapse of case of Enron Corporation, relevant government branch, extensive investor, creditor and the public pay more attention to the problem whether NAS influence audit independence or not. At the same time, Discussion also happened in auditing profession. In July 2002, US government proclaimed the Sarbanes—Oxley restricting non-audit service in form of legislation, and other countries followed by. The CPA service of China still is on the phase of simplication and lag, the developmental status not only cannot satisfy the demand of CPA service's development, but also against the steady development of CPA. In this background, it is important for us to make research on NAS in the view of theory based on our own situation, and a comprehensive and systemic research on non-audit service in the view of theory is necessary and important.After presenting the definition of non-audit service, the paper introduce development of non-audit services in the foreign countries, it focuses on comparison and analysis of the national policy before and after the Enron Corporation. The paper analyze the impact that non-audit services has on the independence of audit, and believe that attestation non-audit service of has little effect on the independence of audit; While management consulting services may have more, besides, we should also attach importance to its threat to the independence of the audit, then coordinate and properly handle the relationship between the two in order to take preventive measures. The author builds a balanced analytic framework, and believes we should grape the limit of the percentage of non-audit revenue, so as to get a balance between guarding the independence of CPA firms and seeking long-term development. Lastly, the author analyses the necessity and possibility of developing non-audit service in our country, combining the condition of our country, and also discusses how to hold the independence of audit, how to develop non-audit service, emphatically on the development strategy, from the following aspects: the external environment, the external supervisory, Institute of certified public accountant, and accounting firm.