Economic Analysis of the Auditing System for Certified Public Accountants

Author: Han Lirong
Publisher:
Publish Date: 2006-12-01
Features: China is currently in the process of transitioning from a planned economy to a socialist market economy. The establishment and improvement of the socialist market economy system is our current major task, which mainly includes four aspects: First, property rights and state-owned enterprise reform; Second, the establishment and improvement of market systems and market institutions; Third, the transformation of government functions; Fourth, the establishment and improvement of the social security system, etc. This book applies the theories and methods of institutional economics to study the certified public accountant audit system, which serves as the infrastructure of the market economy system. It reinterprets the reasons for the emergence of the certified public accountant audit system, its nature, and its inherent contradictions using the theories of institutional economics. It analyzes the internal structure of the certified public accountant audit system and proposes the view that it contains six elements. From the perspective of institutional economics, it analyzes the functions, roles, and conditions for the functioning of the certified public accountant audit system. Using the analytical framework established in this book, it examines the shortcomings of China's certified public accountant audit system and proposes further measures and suggestions for improvement.