Research On Behavior Alienation Of Independent Audit Based On The New Fraud Diamond Theory

Behavior alienation is one of the most important reason for audit failure.Shu Lun Pan CPAs,which is considered as the leader of domestic social auditing industry,has been punished many times by CSRC due to behavior alienation.Built on the revised FDT theory,this paper discusses the motivation of audit behavior from five aspects: incentive,opportunity,personal morality,capability and corporate governance.The incentive of Shu Lun Pan CPAs contains the reliance on traditional services,alienation of auditing tripartite relationships and malicious competition by other CPAs,while the incentive of its staffs includes heavy workload,unreasonable performance appraisal and harmful compensation policies.Opportunities come from a bunch of failure of major project identification,multi-level review mechanisms,internal guidance and external oversight.Factors related to personal morality consist of organizational culture(influenced by supervision of branches,staff mobility,and training methods)and external influences.The capability of implementer comprises the ability of identifying opportunities,make up stories that seemingly true,and escape from punishment.Governance of CPAs contains the property rights system,the governance structure,organizational culture and supervision of branches.Therefore,this paper argues that Shu Lun Pan CPAs should develop a series of strategies like modify its development strategy and improve the classification of major projects and supervision of non-significant projects,and so on.