The Cause And Governance Of Audit Collusion For Chinese Listed Companies: An Explanation With Promotion Game

In recent years, the listed companies Audit Collusion cases appear unceasingly at home and abroad, but in our country, the Audit Collusion problem is even more prominent. Since our country's Stock Market emerged, the case of audit institutions and listed companies conspired to deceive the audit client and the public have emerged in an endless stream, whether the quantity, or the frequency, is much more serious than other countries.About the problem that why the phenomenon of the listed companies Audit Collusion is more prevalent in our country, most existing researches explains our country's Audit Collusion from the audit activities itself, summing up the reason as the trustee's distortion, the audit market structure is irrational, the audit system arrangement misconduct, etc., and with little regard for the impact of the special system background on the listed companies Audit Collusion during the particular stage of our transition.However, in fact, the government measure which proposed in the existing researches has not yielded satisfactory effect in actual implementation process, and far has not achieved government goal for our country's Audit Collusion. Therefore, carefully examining our country's listed companies Audit Collusion from new research angle of view, and exploring the immanent cause which the Audit Collusion behavior is in vogue in our country as well as System factor which influences tradition government measures' government effect is necessary.Trough a three-person game-theoretic model including listed companies, audit institution and regulatory bodies, this paper analyzed the impact of local government officials' incentive distortion which is caused by political tournaments on listed company audit collusion. The results show that the audit collusion nested in the local government officials' political tournaments. This is the important reason which causes the audit collusion to become a long-standing problem, as well as to become a common phenomenon in Audit industry. To governance the audit collusion fundamentally, we have to carry out Policy innovation combining with the background of this system.