| Research backgroundA stock company is the outcome of the socialized manufacture and one of the major organization forms, which is the important part of the national economy. However, a stock company is a double-edged sword, which also brings risk when it accelerates the society economy. Due to its particular interest structure, it bears a bigger risk-enlarging mechanism. Once coming up against business failure, the large risk, which is held in stock companies, will be released. Its demolishment is incomparable by the other firms. So how to adapt to and satisfy the modern corporation system is a very important issue with which the auditing literature and practice are fronted. Research topicsUnder the background, I choose "the fundamental issues of stock-company audit" as the research topic. Two aspects are emphasized: one is uniqueness of stock-company audit environment, which affects great the audit procedure, the other is what special demands on the audit procedures stock-companys have, which are great different from the other firms as an important firm organization. The first aspect is focused on the audit environment analysis, including the audit right, audit independence, audit objectives and technical standards. The second aspect is focused on the audit procedures and special audit issues, such as materiality, non-standard audit report and earning management. Main structureThe thesis includes five sections:1. The audit body and independence of stock company. The first part of this chapter's analysis tool is firm theory. After pointing out the drawbacks of the government audit dormant mode (GADM), I bring out the independent audit dormant mode (IADM), and give the reasons why we choose IADM as a better substitute for GADM. The second part firstly describes the actuality of the social audit, then emphasizes the importance of the audit professional independence, finally brings out some measurements, for example reforming the accounting firm's organization, strengthening the professional moral education, constructing the peer-reviewing, perfecting the independence rules and so on.2. Professional technical standards and the audit objectives. There are two kinds of audit organizations in the audit of stock company independent audit and government audit. Therefore, the two audit organizations should have their own professional technical standards. The Chinese CPA's and government audit professional technical standards both have drawbacks to some degree compared with the international standards. The CPA professional technical standards only includes the CPA's independent audit service, excluding the other CPA's services, such as the non-attestation services which are the dispensable part of the CPA' services. However, different services provide different levels of assurance. As a result, it is difficult for the report's users to tell different levels of assurance. So it is necessary to reconstruct the system of The CPA professional technical standards. In this chapter, the stock-company audit objectives are also discussed.3. Special items of stock company audit. The chapter is focused on the stock company re-organization audit, M&A audit and the related transaction audit. 4. Materiality and non-standard audit report. The chapter discusses some topics such as how to apply the concept of materiality in stock-company audit and the special events which lead to the non-standard audit reports. The special events are material uncertainties, going concern, emphasizing a matter, departure from GAAP, scope limitation, lack of independence5. Earnings management in the stock company. This chapter mainly discusses1) the motives of earning management include improving the performance evaluation, acquiring the loan and the other commerce credit, cutting down the income tax and achieving the politic benefits2) The main types and methods of earning management. There are two types of earning management, embroidery the financial position and the result of performance. The main methods of ear... |
