On The Integrity Of The Building Of An Independent Audit System Arrangements

In 2001, with the exposing of a series of financial affairs, the CPA is queried. Trade of Chinese CPA is experiencing unprecedented sincere crisis. The primary task that the whole trade faces is to construct sincere.But we should realize that , lacking sincere is not a peculiar problem of CPAs. Under background of transition economy, lacking sincere can be found everywhere. If we ignore the realistic environments to discuss sincere principles isolated ,we will find it lacks realistic meaning. Sincere is not an abstract morals issue, but having its very complicated social economic culture even political backgrounds . Only by advocating and educateing CPAs to be sincere is not enough,we must criticism and rectify it in two respect , morality and construction of institute .Considering what have been mentioned above, regarding basic concept of institutional economics as the theory starting point analysed, this thesis study question of building audit sincere. The full ethesis is divided into four parts.One part of article, by analysing sincerity in traditional culture and required in market economy ,we draw the conclusion that sincere construction should be arranged with certain institute of the foundation.In traditional culture ,only emphasizing training of personal morals and folk prescription , lacks general system to restrain from the persons who break one's promise .In market economy ,we do not only require parties to be sincere .The more important thing is making compensate and encouragement for sincere behavior and unsincere behavior should be punished. All this forcing parties to be sincere. The economic individual decides to take a certain behavior mainly by considering whether it is economically effective .So the behavior of CPA is determined by validity of institute and stability of expected . Chapter 2 analys institute background of the reasons why auditors lack the sincere seriously in our country from three respects .First, because of no demanding of high quality audit in existing system arranged, the auditor has not incentive to be sincere . In the capital market which is interferenced administratively by government,financial information is not connected with stock price of enterprise tightly. Because the financial information of enterprises is not paid attention by investors , what enterprises need is the office that can" cooperate" . Submiting to pressure and conspiring with each side, is rational choice of CPA. CPA lacks the external pressure to be sincere under existing system arranged. Because of unreasonable relations between corporate and CPAs, sincere level of CPAs is restricted seriously too.Second, under the existing system arranged and laid, auditors lack the external pressure to be sincere.This thesis analyse the lawsuit qualification, cost and income, proving that legal risk of auditor who breaks his promise is not strong in our country. Besides ,most firms of CPA is Ltd ,which makes the cost of not being sincere is low and the potential incomes is very high.Third ,the supervising style is not suitable for the institute construction of CPAs.It is apt to appear supervise blank and strengthen the cost of supervising artificially also.If the government controls improperly, the organ of power involves too manily. It will lead to the fact that certified accountants serve with low quality , interests of masses can not be protected and the department cuts apart the aduit market. When government interests are not in accordance with trade interests, the function of the association is difficult to give play. Function of associations is less thans at location,it is difficult to find behaviors that broke promises.In charter 3, we regard realization terms of the prestige mechanism in institutional economics as the theory starting point .And guiding by thefunction condition of the sincere mechanism independently, this thesis try to build system institute of audit sincere . The fourt...