Research On Problems Of Corporate Governance And The Independence Of Certified Public Accountant Auditing

Since 2001, America erupted the bankrupt of Enron Occasion, after that, in 2002 the America WorldCom Occasion. Then, a series of "audit failure" case were discovered. Thus, the independence of Certified Public Accountant (the "CPA") will be in doubt. The system of CPA auditing is a necessary segment of superintend system of the market economy development and normal operation systems, its independent principle may not doubt. But faces the low quality of management or the management has schemed with third party to manipulate the company's financial information, the independence of CAP is also unavoidable to bear the pressure or difficultly to expose these schemes during the audit period. After those occasions, the American Stock Exchange firstly announces The Sarbanes-Oxley Act 2002 to improve the discipline of the corporate governance, strengthen the internal control and requirement of CPA's auditing. The aim of the Act is mainly to retrieve the society's confidence on companies, Stock Exchange and CPA. The quality of Company's corporate governance and the independent of CPA's auditing are mutually influenced. The high quality of company's corporate governance may decrease the audit risk and the independent pressure of CPA, otherwise, high independence of CPA may urge the company to improve its corporate governance.Based on the study of corporate governance and independence of CPA auditing, this paper tries to analysis their relationship, present development, inquire into the difficulty and reasons during its execution. Meanwhile, proposed some suggestions to strengthen the independence of CPA auditing and further to perfect the corporate governance structure, such as, strengthens the internal audit, the strengthened independent director system and how to solve the problems in carrying out those policies, the establishment of communication platform between independent directors and CPA, and the internal control report. These improvements should not only solidify the independence of the CPA, also, they will rebuild the good faith and marketing economy status of CPA and companies.