Sound Independent Audit System To Improve The Quality Of Accounting Information Of Listed Companies

The quality of accounting information in listed companies played an important role in the development of capital market of this country. Currently, the quality of accounting information in Chinese listed companies is not very good. There are many reasons about it. But as one of external institutional arrangements that can guarantee the quality of accounting information in listed companies, independent auditing system undertakes inexcusable responsibilities. This article tries to uncover the reasons leading to audit failure through analyzing the potential problems existing in the following aspects: audit environment and audit methods. Then presents the conclusion that we can guarantee the creditability of audit report as long as we can assure the audit independence and improve audit quality efficiently and effectively.First, the writer begins analysis from the perspective of audit independence and audit quality, combined with plenty of facts and materials, the writer anatomizes the potential problems existing in audit industry. Second, through analyzing the reasons leading to the current audit failure happened in USA, the writer analyzes the reasons for audit failure cases from the following aspects: lacking in audit independence, the own problems of auditors and the dysfunctional peer review. Through analyzing the audit reform initiated by USA, the writer provides some beneficial advises about how to develop china's audit business. At last ,focusing on the current conditions and existing problems of china's auditing business, and also combined with the beneficial example of USA audit reform ,the writer provides eight specific suggestions: in keeping audit independence, the writer opinions are that we should focus on the following aspects ( 1) change the method of audit fees (2) expand the operational scale of auditing firm (3) establish publicizing avenue (4) increase the cost of default. In improving audit quality ,the writer thinks we should (1) transform audit mode ( 2) improve the operations of audit practice (3) improve the arrangement system of humanresources (4) strengthen the monitoring of CICPA. At the same time, take multiple reform measures to reform the imbalance of audit system in china.In a word ,only if we improve and make relevant audit environment and governance system more and more better and establish objective fair effective and efficient independent audit system can we assure the accounting information listed companies provide have an appropriate level of high quality.