Non-audit Services On Auditor Independence And Coordinated Development Strategy

The main four accounting firm in USA have always stated that non-audit services do harm to the auditor independence. However, after the Enron scandal and Xerox finance cheating happening, they would never provide their clients with information techniques consulting and internal control services.However, if non-audit services are wholly forbidden, the development of CPA will be undoubtedly hindered and the competence of resisting auditing risk will be weaken. This fact has been approved in France. So with consideration of the special of CPAs' auditing in china and from inspiring angle, we should permit CPA offer NAS which can improve CPA industry.In the thesis, research is carried out in below design:In chapter 1, the focus of current discussion about Enron scandal is reviewed. On the basis of analysis of international NAS market, the reason why author choose this topic to research will be explained. And in the last part, the whole structure of the thesis is depicted by a picture.In chapter 2, the definitions of AS, NAS and auditing independence are introduced. This part is arranged for the next chapters can be easily understood.In chapter 3, essential problem about conflict and co-ordination between NAS and AS independence is researched. In the part of conflict, the impact of NAS on AS independence is elaborated on respect of theory and practice. Then policies of NAS from different countries have been analyzed, even since broke of Enron scandal. In the part of co-ordination, the thesis put forward to balanced idea of independence. In the end, the contents of different chapters are showed in following diagram.In chapter 4, the necessity and feasibility of developing NAS are analyzed. On the basis of review current situation, the co-ordination strategies of inner and outer must be set up by CPA profession to mitigate people's suspicion of audit...