An Analysis About External Audit Independence In China

Independence is a very important concept of the modern audit, it is not only the basic ofcertified public accountants ethics, it is the quintessence of external audit. External auditorindependence in external audit work is the important guarantee. Lost independence, externalaudit will lose its the meaning of existence.China’s external audit development only more than20years, its development process inthe government makes audit market excessive intervention of free competition was not fullydevelopment, and for the development of a rapid makes employees, the good and bad areintermingled related system security is not perfect yet, this series of problems which thecountry’s external audit independence serious lack. And the United States and France in theexternal audit independence has some mature security, we should learn and referencepractices, such as audit rotation system, professional liability insurance system, industry peersystem and so on.In order to enhance our external auditor independence, first，to develop the audit services,and make full use of the audit service to promote the progress of the certified publicaccountants industry; secondly, to choose again firm employment mode, reduce the incidenceof conspiring to audit; thirdly, to regulate firms charge system, improve the auditing marketreturns; forth, to perfect the certified public accountant professional insurance system, toguarantee the audit practitioners rights; fifth, strengthen training certified public accountants,perfect management firm.