The Study Of Non-audit Services Based On The Expedition Of Audit Function

Non-audit services (NAS), as certified public accountant's (CPA) traditional service items, had already existed while audit services were growing vigorously. However, within quite a long time, audit was regarded as the key business of CPA profession, while non-audit services did not arouse people's attention. Since 1970s, the fierce market competition has offered good opportunity for the development of non-audit services. Non-audit services gradually became the most potential value-added services. By 1990s, non-audit services have made more profit than audit services, and grew up to the main profit-earning service items of CPA firms.Independence is the key to the moral of CPA owing to its close relationship to survival of the CPA business. With taking diversification strategy and expanding NAS, many foreign CPA firms have grown up quickly. With the development of NAS steadily, the argument that NAS may weaken audit independence has been heated gradually. More and more people think that CPA shouldn't provide audit and NAS at the same time. Whether the provision of NAS could impair audit independence of our country in the present stage, is worthy of studying.This dissertation includes five chapters, as followed.Chapter One: Research OverviewThis chapter mainly introduces the research background, purpose and significance, and describes the research methodology of this article. Does a literature review on whether CPA should provide non-audit services at home and abroad. Concerning this question, foreign scholars have accumulated abundant materials and done their research beginning with the analysis of the relationship between non-audit services and auditing independence, while they haven't reached the common agreement but formed three different opinions. In contrast, domestic scholars basically analyze the pros and cons of non-audit services and advocate the development of non-audit services, combining with domestic present situation.Chapter Two: The Expansion of the Audit Function and the Rise of Non-Audit ServicesThis chapter begins with the functions of the basic concepts of function, to the audit function and how to expand it. With the expansion of audit basic function, the scope of non-audit services becomes more widespread.Chapter Three: The Basic Scope of Non-Audit ServicesThe standard of division between Certified Public Accountants'non-audit services and audit services has not yet been unified. This chapter introduces three influential criteria for the classification and the main business of the big four CPA firms. Based on the literal meaning of non-audit services, the author do a concept defined to the non-audit services carried out by China's accounting firm currently, and introduce the non-audit services specifically in the classification of forensic services besides audit and non-forensic services.Chapter Four: The Impact of Non-Audit Services on Audit IndependenceThe academic research of non-audit services and audit independence are currently hot. This chapter firstly analyses the impact of Non-audit services on audit independence from the theoretical analysis simply, and then select the data disclosed by listed companies in 2007 reports, do model research by the audit opinion as the dependent variable. OP=C(1)+C(2)*NF+C(3)*AUDITOR+C(4)*LEVERAGE+C(5)*LNASSET+ C(6)*OPCASH+C(7)*RISK+C(8)*ROE+C(9)*TENOR Through the test of the model, and finally e conclusion: our country to carry out non-audit services has yet to have a significant effect on audit independence at present.Chapter Five: The Necessity and Policy Recommendations for Our Country to Carry Out Non-Audit ServicesThis chapter indicates the necessity of our country to carry out non-audit services, and gives some recommendations combined with our country's current situation and existing problems.