Research Ethics Relations Between Accounting Firms

The financial fraud and audit failure case, such as Yinguangxia case and Orientalelectron case, which once shocked the domestic auditing industry, still make a largenumber of people in the industry in mind. In recent years, however, some new cases,such as Wanfushengke case and Guitang stock case, appeared in succession again.From these cases we can conclude that CPA’s the lack of moral and professionalincompetence are the main cause of audit failure. Therefore, CPA ethic problem hasbecome the focus in the audit industry.This paper attempts to study and solve CPA firm ethical problems from theideological perspective, based on revealing and analyzing ethical dilemma causesbetween the domestic CPA firm and its stakeholders (partners and managers,employees, customers and peers). Based on the continuation values and traditionalculture for thousands of years, this paper selects the Confucianism as the referenceobject. Through analyzing positive impacts and negative impacts of the mainConfucian thoughts, which are benevolence, righteousness, courtesy, wisdom, trustand harmony to the domestic market economy and audit industry, integratescientifically the Confucianism into the domestic CPA firm ethic relationship buildingby absorbing the positive factors and curbing the negative factors.This paper puts forward some Confucian thoughts to the CPA firm ethical relationshipmeasures. For example, establish partners, management staff the thoughts ofkindheartedness; construct the firm internal strict, transparent, reasonable personnelsystem; establish trust mechanism between the firm internal personnel and so on.