Research On The Performance Of Legal Regulation Of CPA Profession

Since the recovery of the stock market,the market economy has been developing rapidly,and the role of certified public accountants as "economic police" has become increasingly prominent.In the early development of the industry,legal regulatory environment is weak,causing industry chaos,interfering China's securities market economic order and damaging the interests of investors.After the Enron case,market theory doesn't work and western CPA is caught in a huge litigation storm.Because of the incompleteness of law,relying solely on the legal management has obviously hysteresis.Therefore,it is necessary for the regulators to participate in the management of CPA.Administrative orders and legal means are the two commonly used supervision methods.Legal supervision system is not only important to guide the development of the CPA industry,but also to help protect the interests of investors.The legal regulation of the CPA profession is becoming more and more important in every country.It is of practical significance to study the legal regulation performance of the CPA profession.Legal supervision system of CPA profession is a kind of institutional arrangement.It must go through the process of institutional change and need to be constantly revised and perfect.It provides a new way to explore the legal supervision performance of the CPA profession that research on the inherent law of the change of the legal supervision system.According to the standard of Li Ruoshan's division of CPA's legal liability,the development process of China's CPA industry is divided into four stages: early stage(1980-1991),embryonic stage(1992-1995),the rapid development stage(1996-2006),the stable development stage(2007-2015).This paper focuses on the two stages of the decoupling of the accounting firms.According to the theory of institutional change,the change of institutional arrangements can not be separated from the two factors of administrative promotion and market induced.Extended to the CPA profession,we can measure the legal supervision performance of the CPA profession from two aspects of administrative performance of of supervisors and market performance after informationfeedback.In this paper,two methods of descriptive statistics and empirical test are used to measure the administrative performance and market performance.The two eventually reached the same conclusion,that is the conclusion of this study:(1)with the change of the legal supervision system of audit,the auditor's audit quality is continuously improving and the performance of legal supervision is continuously enhanced;(2)after the emergence of the new legal supervision system,if the follow-up has not been strengthen,the effect of legal regulation will be gradually weaken;(3)comparison of administrative,criminal and civil penalties that three kinds of penalty means,the best deterrent punishment is civil law.Finally,according to the conclusion,the author puts forward some policy suggestions to improve the performance of audit legal supervision in China.