The Social Foundations And System Guarantees Of Financial Statement Audit Of The Public Companies

Financial statement audit system started in early 1990 s when our securities market was established. In terms of the management of the securities market, we draw lesson from USA because of its mature management experience to securities market, such as the establishment of financial statement audit system. Since its establishment, it has been acted in China for 30 years. During this period, although the implementation of financial statement audit has played an important role in safeguarding the quality of financial information of public companies, there are still some problems in its development. Therefore, this paper will be based on USA, studying its social foundations and system guarantees to find mechanism problems in the audit of financial statements.This paper will give definition and range of public companies、financial statement audit、 social foundations and system guarantees at first. Then this paper will consider the background of 1930 s so as to analyze the social foundations and system guarantees of financial statement audit in USA. Then According to the situations of China, we analyze the social foundations and system guarantees of financial statement audit in China. By this analysis, we find that financial statement audit in China has a lot problems both in social foundations and system guarantees, which do bad to the effective conduct of financial statement audit. On this basis, this paper will put forward some countermeasures to solve the problem.This paper expects to find the problems by analysis of the social foundations and system guarantees of financial statement audit, in order to bring the financial statement audit to play its due role.