Independent Auditing Behavioral Research

The primary advantage of the market economy is that markets allocate resources rationally and efficiently by free flow of goods and services. Securities market is a derivative of the market economy's development, which is an important factor of optimizing the resources allocation and promoting the economic development, but the ubiquitous information asymmetry has a negative-going effect. The effective method to lessen the negative influence of information asymmetry is independent auditing. The rational and efficient public auditing behaviors become the most important method to protect the interests of the medium-small investors and the institutional guarantee for the efficient allocation of resources. At present, the main problem of the independent auditing behavior is the principle of independence is not fully observed, resulting in low quality of auditing and low social credit standing, which harms the audit-sector's survival and development. An important task now is to avoid the bad auditing behavior, comply with the principle of the independent and improve the quality of auditing. Thereby, to realize the optimization of the auditing behavior is the most primary puzzle to be solved both in the auditing theory and practical field. In this thesis, the research's emphasis is:1. The drawback of the inspiring and restricting mechanism induces the behavior chasing for the economic interests and ignoring the social interests. 2. How to strengthen the power of the inspiring and restricting mechanism to consolidate the aim of both economic interests and social interests in the independent auditing behavior. The logic relationship between the two points is: Question 1 is about the causal analysis of poor independent auditing behavior. This is the basis of suggestions of solving the correlative problems. Question 2 is about the countermeasure research on eliminating the poor auditing behavior by analyzing the keystones and difficulties in the process of strengthening the power of the inspiring and restricting mechanism. The researching method is: At first, by presenting the existing state and the harm of the bad auditing behavior, the thesis points out the necessity to optimize the independent auditing behavior. The secondly, it analyzes the reason for the bad independent auditing behavior by using the fundamental theory of behavioral science. At last, on the basis of the analyses, it attempts to bring forward some feasibility proposals to optimize the independent auditing behavior. The main contents and viewpoints are:From the view of dynamic trend, the independent auditing behavior is a social activity under the mutual influence of both the external environment and internal mechanism. The process is a circulation of demand, motivation, and objective. From the view of static trend, the independent auditing behavior includes three elements of audit subjects, audit objects and audit environments. The audit subjects, the auditors and audit institutions, are mainly CPAs and public accounting firms. The audit objects are mainly managerial bureaus of audit clients. The auditenvironments include not only politic, economy, cultural and law, but also audit clients. The behavior motives of the audit subjects lie in two aspects. One is for their self-interests, and the other is for social benefits. These two motives form an organic unity. It is irrational to ask the audit subjects to chase after social benefits without profits, or to chase after profits by ignoring the social benefits. The audit subjects have to attach the same importance to the social benefits as the economic interests. To achieve this purpose, we must depend on the establishment and the function of effective inspiring and restricting mechanism.At present, the existing problem of independent auditing behavior in our country is: the audit subjects could not harmonize the relationship of the self-interests and the social benefits, chasing only after the self- interests without independen...