Research For Regulation Of Our CPAs' Industry

The CPA (certified public accountants) is named "Economy Policeman" and plays an important role to maintain the market economy and social economy activity in order. In recent years, a series of distorted accounting cases appeared in our country, such as "Qiongminyuan", "Lantian stock", "Kelong electrical equipment" etc; it has seriously affected the profession prestige of our CPAs' Industry. Distorted accounting cases are not only exist in our country, but also the "Enron" case exists in USA whose capital market is the biggest, the most advanced and influential in the world, the CPAs' Industry faces with unprecedented trust crisis, the government of various countries have to reconsider the CPAs' Industry regulation. At present, how is the actuality of the management system of our CPAs' Industry? Which faults does this regulation mode have? These questions we should thoroughly ponder and research. The CPAs' Industry regulation is the research object in this paper; we use the theories of management economics and public economics, look for the cause of CPAs' distorted actions through the phenomena of the distorted accounting and audit information, analyze and research the actuality of the management system of our CPAs' Industry. We unite the theory and the practice; take advantage of the advanced international experiences and research with the innovation. We compare and appraise three different regulation modes: government-regulation, self-regulation and independent-regulation, then work out a new fitted regulation mode for our CPAs' Industry. In chapter one, we bring forward the actuality of the low quality practice of our CPAs' Industry and independent-audit failure fostering accounting distortion and its damage, educe the important meanings for researching the regulation of the CPAs' Industry and our mostly thinking. In chapter two, we analyze the theory accorded by the regulation of the CPAs' Industry. Account information has special property, so has special supply and demand relation. We analyze the effecting factors and how the relation will reach balance in four different markets. The information distortion is because of its dissymmetry. The market isn't all-purpose, so government regulation is necessary for the market failure. In the paper, we make out that the CPAs' Industry needs moderate government regulation through the "Subprime lending crisis" case of USA. In chapter three, we analyze the problems existent in our CPAs' Industry through system, practice and external factors. In chapter four, we analyze and appraise the actuality of the management system of our CPAs' Industry and its faults. In the last chapter, we analyze and appraise the characteristics of government-regulation, self-regulation and independent-regulation. After the "Enron" case, USA and Britain etc. changed their regulation modes, and will tend to being similar. At last, we work out new regulation mode for our CPAs' Industry. We hope it will provide beneficial reference for our CPAs' Industry.