Study Of The Independence Of The External Audit Of Listed Companies

Events of stock market's falsification happened frequently in recent years. As a means of corporate govemance, external auditing doesn't work effectively. In the eyes of the law, weakness of the institution design is the fundamental reason for external auditing isn't independent. It embodies two aspects: the first, China's legal system for external auditing does not accord with the actual state of our country; secondly, legal system for external auditing is on the condition of lack of institution in view of the overall situation yet.Current institution of external audit entrust cause entrust right of external auditing is in the hands of management, which undermine the state of client, independent auditing body,person under auditing balance and is opposed to fundamental principles of external auditing. By comparative analysis, I suggest legal institution of external audit entrust should be redesign, and it can grant entrust right to audit committee being free of management.Current legal system can't ensure audit committee external auditing' s independent by analysis of business entity harnessing structure. On this basis, I suggest arranging audit committee a rational position in business entity's structure by legislating.Base on reference of international matured stock market , I give some legislative advice about national institution extemal auditing, including appointment and dismission of external auditing body,related legal institution, which provide reference of instituting national institution of external auditing...