The Study, Based On Certified Public Accountants Of The Practice Environment Of Moral Hazard

Moral Hazard of CPA is one kind of dissimilated behavior, and exterior system arrangement is "the chief criminal" which causes it. Under imperfect or even dislocated arrangement, however we appeal for moral or honest returning, there will be no help. Environment is the key factor that influences CPA's moral hazard. It decides whether the way that human pursue the inherent instinct of own satisfying is finally moral hazard or not. Under market economy, morals don't certainly mean "one for others", because the highest standard should be "benefits both oneself and others". Moral construction violating human inherent instinct must be futile. What we should do is to improve environment at the basis of recognizing human self-benefited instinct to make CPA's behavior benefit both himself and others. The material interests are still the most important independent variable in people's effectiveness function, so two key factors which influence CPA's choices are income and cost. In various aspects of CPA's environment, market environment and legal environment have the most direct and closest relation with income and cost, so the two become the most important aspects influencing CPA's choices.Market environment includes two main aspects: demands and supplies. To a fair extent, CPA's moral hazard has been caused by the low quality demand, which is caused by internal people's entrusting as a result of internal people's controlling. Supplier's weak status which is caused by particularity of CPA's service and the dispersible supplies strength increases CPA's moral hazard.Legal risk also has remarkable influences on CPA's choices. Under high legal risk, CPAs practice more carefully and moral hazard behavior will be restrained; when the legal risk is low or even zero, CPAs as rational economic people will be unscrupulous in pursuit of their own material interests and moral hazard will rise. In our country, the way and dynamics of administrative punishment are both not strict enough, the probability of criminal sanction is too low, and civil action for compensation is very difficult, which can't achieves effective restraint against CPA's moral hazard.So, to give CPA correctly guide to ethical behavior and effectively curb CPA's moral hazard, we should improve both sides of demand and supply. Firstly we should give commission rights to right people, to make CPA out of dilemma and to reduce moral hazard to the lowest level. Secondly we should enhance CPA's strength, to reduce its dependence on specific customer and enhance the ability to resist moral hazard. At meantime, we should improve the legal environment, increase the cost of CPA's moral hazard behavior and enhance deterrent power of laws to inhibit CPA's moral hazard from the inverse side.