Empirical Research On The Effect Of The Implementation Of The Strengthen Government Regulation On China Certified Public Accountants' Industry

In order to strengthening the supervision of the CPA, regulate the auditors' behavior, improve the auditing quality, in November 2002,the Ministry of Finance promulgated: " Strengthening The Management Of The CPA " (Accounting [2002] 19) and" Terminate The Administrative Functions That Was Exercised By The China Association Of Registered Accountants "(Office of Finance [2002] 136). Whether the norms of CPAs, it directly related to the quality of national economy information and the efficiency of market mechanisms, and the establishment of the normal economic order, and the improvement of the market mechanism. Therefore, the research on the effectiveness and improvement of the supervision of the CPA has far-reaching historical significance and practical significance.The Ministry of Finance promulgated both documents In November 2002.This indicates that China strengthen government regulation on CPA, so we regard this incident as the time line. Firstly, we uses descriptive statistics method to analyze the overall situation of the quality of China's capital market independent audit before and after two 2000-2003 years for the implementation of the measures. Then we collect companies that issued shares in Shanghai and Shenzhen stock market from the year 2000 to 2003 as analysis samples, use of Logistic models to test the affect of the strengthen government regulation on CPA for the auditors to decide to deliver "modified audit opinions" or "clean audit opinions", and which kind of "modified audit opinions" should be delivered. Inspection the institutional factors whether to raise the quality of auditing or not. The results demonstrate that the strengthen government regulation on CPA in 2002, not only for the independent audit market have certain norms, and have certain constraints for the auditor in the choice of covert "modified audit opinions".