A Study On European Auditing Harmonization

Nowadays,the economic of the world becomes more and more close. The regionalcooperation and global cooperation has been recognised by the most countries of theworld,in the meanwhile,cross-border trade and over-listed companies are increasing.As aninternational language,accounting naturally plays an important role in the process of theinternational capital market integration.Economic cooperation requires a higher quality tothe financial information,accounting harmonization appears accompany.Accountingstandards coordination stimulates demand for audit coordination.Audit harmonizationdoes’t mean a return to the origin,but a new starting point.Accounting harmonization hasbeen a hot topic in the field of accounting,however,the research on the audit harmonizationis still rare in the domestic and foreign literature.Audit harmonization in European Union is a successful example among the regionalaudit harmonization.In response to the overseas-listed companies’financial fraud,the EUhas conducted a series of audit harmonization activities to ensure the comparability of theaccounting information and audit reports.This paper states specifically thebackground,meaning and process of the audit harmonization of the EU.The EU’s auditharmonization needs reaching agreements to coordinate international policy and systemcontinuously.The purpose is to create a regulatory framework of statutory audit in the EUin order to strengthen the function of the auditors,expand the scope of the statutory auditmarket and eliminate barriers among the member states.In recent years,China’s trade cooperation is getting more and more.The auditingstandards’international convergence and cross-border supervision becomes more and moreimportant.The purpose of the thesis is to study the successful experience of the EU’s auditharmonization,in order to make a contribution to China’s auditing profession in thefuture.At the end,the paper also put forward my own suggestions,hoping to play a valuablerole.