Positive Research On Audit Independence Based On Audit Objects' Characteristics

The paper firstly reviews the origin of audit, where the function of audit is known, that is, audit by Certified Public Accountant is able to help expected users except these responsible enhance trusting extent to the audited information, playing appraising, protecting and testifying roles. Audit plays a core role in protecting such functions. The research on audit independence is aimed to find elements that may hurt audit independence. Many have studied on the theme but no conclusion. The paper tries to integrate as many elements affecting audit independence as possible, and then makes use of data to prove some. The paper primarily studies affecting elements of the characteristics of shareholders and the board of directors on audit independence. The next section collects the elements that may affect audit independence from literatures home and abroad. Some have been proved, for example, non-audit services conflicting with audit. Some are uncertain, such as director system in audited companies. The paper analyzes and selects many affecting elements paving for abstracting independent variables.The third section transforms the affecting elements into independent variables. There are 17 independent variables; certainly then some will be deleted. Two sorts of dependent variables are selected from former literatures. The paper does lots of work on appraising discretionary accrual model, and then selects proper models.The fourth section does positive analysis based on former work, and then gets some evidences for some hypotheses. The board of directors effectively supervises the operating of companies and sustains audit independence. The fact that the first big shareholder is non-state artificial person promotes audit independence.The paper obtains some results through the research above, but still need improve some.