Research On The Effectiveness Of The Audit Entrustment Pattern Of "Financial Statement Insurance"

Independence is the soul of independent audit. The collapse of Enron Corporation has raised much concern about independence from professional circle, investors and the public. IN the"Post-Enron"era, Joshua Ronen from New York University firstly invent an institution named"Financial Statements Insurance"(FSI),aiming at establish an institution named which aligns the interest of auditors with that of shareholders, thus solve the problem of auditor independence fundamentally. The paper studied from the research of the rationale to the historical development process of audit entrustment pattern, and with elaborating the audit independence, pointed out importance of the audit entrustment pattern to the audit independence.