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The Research Of Auditing Collusion Government Based On The Characteristics Of Corrupt And The Right Of Choosing Auditor

Posted on:2010-12-21Degree:MasterType:Thesis
Country:ChinaCandidate:B S YeFull Text:PDF
GTID:2189360275981819Subject:Accounting
Abstract/Summary:PDF Full Text Request
The existence of audit collusion makes the last line of defense of financial fraud collapse, following the world's energy giant Enron collapse, the case of financial fraud and audit collusion is not uncommon, how to tackle the issue of audit collusion which makes the academic profession and the practice feel chronic headache, has been plaguing us. Measures and a series of recommendations were referred to the desk such as incentive to increase efforts,to strengthen the legal constraints, the implementation of effective monitoring, to improve moral mechanism, but the audit collusion has not been govern effectively. Therefore, how to open a new path, from different angles and take different measures to address the issue of governing audit collusion is a topic worthy of study.By the symbiotic characteristics of the company's financial fraud and audit collusion, from the perspective of the fraud management, the choosing auditors, and corporate governance, through theoretical analysis and empirical testing, this paper advise the fraud management as the first step in governance audit collusion, then using the method of choosing auditors to cut the demand for audit collusion, at the same time, applying a number of other measures of the effective management of the audit conspire to reduce or even eradicate it. This paper make use of 5645 A-share listed companies in Shanghai and Shenzhen during the year of 2003-2007 as data sample which is divided into 209 frauded and 5346 not frauded company group. First of all, the company carried out the analysis of 209 frauded companies, at the same time, the company has selected 209 pairs that never been corrupted in the group and makes an Empirical test of the financial fraud impact of factors using Logistic regression analysis of the fraud sample and the matching sample; and then, in view of two types of companies, the paper uses two separate but linked model to analyze the factors of auditor choice and test on the non-standard audit opinion. We conclude some measures about the governance of audit collusion: the perspective of governance in the fraud, it should increase the timeliness of finding fraud and the efforts of penalties, improve capacity of auditors for finding the hidden means of fraud, concern the important industries and key type of violation where financial fraud occur; in the perspective of auditor choice, by giving the right of choosing auditors to audit committee composed by the independent directors to govern audit collusion problems and improve the formation mechanism of the Board of Auditors and the selection mechanism of independent directors. At the same time, it is necessary to ensure the functions of independent directors to give full play by the equity structure, and intensify the reform of split share structure, to achieve full circulation in equity. In addition, it should also strengthen the monitoring efforts of large-scale listed companies.
Keywords/Search Tags:Audit collusion, Fraud governance, Auditor choice, Independent directors
PDF Full Text Request
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