On The Independence Of The Audit Of The Certified Public Accountant

The independence is a very important concept during modern audit, It is not only an important require of conduct with regard to a CPA but also marrow of independent audit. Audit is not authoritative without independence. Independence is the essential condition of winning the confidence of the investment masses and the public of CPA's job.However, in recent years, the domestic and international financial fraudulent affairs have emerged in an endless stream. And the one that report these true bad news at first is not all CPA keeping on the last line of defence, but exactly the teacher, reporter or inside auditor who were not at the scene. This makes the public produce suspicion to the CPA's sincerity in order that the question about independence of CPA's audit comes up again.This paper takes up the following three parts one by one:First part is the summary of independence, It is including two contents: One is the meaning of independence and the course of the development; The other is the important sense of the independent character.Second part is the important one of this paper. It includes two major contents: (1) the inside factors effecting the independence of CPA's audit: economic benefits, CPA's own bad quality and defects of inside control in an accounting firm's; (2) the external factors effecting the independence of CPA's audit: A. the administration structure of listed companies is not perfect and the CPA's auditing relation has great defects; B. in our country the history that the certified accountant trade resumes and develops brings bad effects to independent character; C. it is unreasonable to auditing mode of charging; D. the service items except audit weaken the CPA's independent character . E. the laws and regulations are imperfect and it is not enough to punish dynamics to the unlawful practice. Here includes six pieces of snack: a. It is not enough to punish dynamics and is short of the civil compensationmechanism; b. the bull supervise and the bull checks to accounting firms are very serious; c. The phenomenon is general to " value place more than a teacher " in law; d. The organizational form of accounting firm in the current legal provisions of our country can only be the limited responsibility system or make in partnership; e. The system that the listed company engages and changes the accounting firm is substandard; f. After finding the unlawful practice the degree of difficulty of the lawsuit is a little greater. This part has quoted a large number of cases and data, and has compared some methods of our country and U.S.A..The third part is the key part to this paper. It has offered the suggestion of improving CPA's auditing independence. This has put forward the suggestion mainly in the part: (1) auditing and counter auditing business haven't met an urgent need on stripping; (2) To reselect the engagement mode in the accounting firm; (3)To standardize the system of charging; (4) To make the administration structure of listed company perfect so as to improve independence conscientiously; (5) To advance the amalgamation process of accounting firms actively and to expand the scale of accounting firms; (6) To perfect " Law on Certified Public Accountants " and relevant laws and regulations, and to strengthen the dynamics of punishment to unlawful practice; (7) To focus on CPA's and accounting firms' own improvement.