Research On Regulatory Issues Of The CPA Profession In China Government

The phenomenon of information asymmetry exist in all of the company’s shareholders, creditors and managers cause the separation of the company’s management and ownership, shareholders and creditors must use financial statements to understand the operation of company. In order to avoid being affected by false financial statements, the company’s shareholders and creditors would ask the Certified Public Accountant to audit the financial statements. Therefore, people call the CPA as "economic police". Certified Public Accountant may be due to the temptations of cheating with the same operator together to deceive shareholders and creditors, thus causing the financial fraud. In order to ensure the quality of the practice of certified public accountants will supervise the industry, the regulation of CPA profession is come into being.With the exposure of a series of financial frauds committed by some companies such as Enron Company, the regulation of CPA profession become more and more important in the countries around the world, its supervision has been strengthen.Especially in China, the fiscal fraud cases of some listed companies such as Yinguangxia and Hubeilihua has also caused the Public’s discontentment to the work of CPA, so regulating the CPA profession has become an important task which is facing the government and community.This article attempts to take some studies put forward their own point of view on how to establish effective regulation of the CPA.There are three systems exist in the regulation of CPA profession, Industry self-Regulatory system, Independent Regulatory system and Government supervision Regulatory system. Each system has advantages and disadvantages. Based on the current situation of China’s CPA industry regulatory to be in-depth analysis, we can peep into the Regulation status of the CPA problems, and analysis of the issues at the same time to propose solutions. To improve the regulation system of CPA profession, it must to improve the relevant laws and regulations, strengthen team building of the regulators and establish a perfect regulatory incentive. Through these strong constraints to regulate the CPA, make it operation normal and orderly.