Capital market audit effectiveness theory

Author: Jiang Hong
Publisher:
Publish Date: 2006-04-01
Features: Based on an analysis of theoretical issues such as the dual nature of independent auditing, the "quasi-agent" nature of certified public accountants, the evolution of fraud audit standards, and the technical approach of modern risk-based auditing, this book proposes recommendations for certified public accountants to fully focus on a company's "unconventional transactions," pay attention to the formation of "special risks," thoroughly monitor negative earnings management behaviors, and pay sufficient attention to the disclosure of off-balance-sheet information. Additionally, it suggests that government regulatory agencies should not only supervise "non-standard audit opinions" but also strengthen oversight of companies issuing "clean audit opinions," increase penalties for violations by certified public accountants, convert moral costs into economic costs, improve corporate governance, and alleviate the "quasi-agent" relationship of certified public accountants to enhance their independence and audit quality.