| Consulting service, as an important business for the CPA firms, is a two-edge sword which increases the margin of profit, decreases and disperses risks, but at the same time influences the independence of auditing. With its rapid development, there have arisen many problems. Especially recently, many illegal cases involving consulting service have caught the public attention and aroused more and more doubt about the independence of CPA and led to a heated discussion on the business scope of CPA. How to face CPA's engagement in consulting service is turning out to be a crucial and impending issue. Based on such facts, the thesis makes "the researches on several problems between CPA and consulting service" its research subject, and tries to approach this problem in two key aspects: One is the related theories and practice of CPA consulting service; the other is whether and how it influences the independence of auditing. Then come the suggestions to solve this dilemma, that is, to prohibit CPA firms from providing consulting service to their audit clients so as to ensure the healthy and harmonious development of CPA consulting service.This paper is wholly based on the current situation of international CPA consulting service. In the frame of the two-edge characters of CPA consulting service, the thesis will explore some key issues such as the basic theoretic problems of CPA consulting service, the connotation of the independence of auditing, how the latter is influenced by the former, and how to take advantage of its good while avoiding its bad effects. Furthermore, the thesis will givevaluable suggestions to the healthy development of Chinese CPA consulting business. The paper is composed of two parts, the introduction and the main body. The introduction part gives readers a clear idea of the discussion target and its background, making a good start to further discussion. The main body includes four parts. Part One is about the current development of CPA consulting service. It takes international BIG FIVE as examples, including rapid development of consulting service both in business volume and in service scope, exemplifying the reasons for such development, such as, the clients require CPA to help them to enhance managerial level, the CPA has the abilities and motivations to offer the service. Then, it points out the negative effects of CPA consulting services to the independence of auditing, and takes the ENRON case to indicate that the lack of independence influences the development of CPA profession. Part Two covers basic theoretic problems concerning with CPA consulting practice. This part includes basic information of CPA consulting service, such as its definition, composing factors, characters, classification, standards for CPA consulting services, and the working procedures. Moreover, the thesis will make a clear line between consulting service and assurance. In a word, this part expatiates theoretically on related matters about CPA consulting service, giving a systemic definition to consulting service.Part Three deals with the negative effects of consulting service to the independent auditing and measures to offset them. First, the definition of independence. On the basis of quoting three typical definitions, the writer gives her own definition to independence. Generally speaking, independence includes threeelements: who should be independent (the auditor and auditing organization), whom should be independent of (the audit clients), and how to be independent (the auditor should be formally and essentially independent, the organization should be organizationally independent and financially independent). The most important factor for independence is its inviolability. Second, the negative influence on independent auditing while auditing firms undertaking consulting service and auditing service at the same time. This part concludes the prevailing two kinds of opinion, one is consulting service does hurts the independence of auditing, while the other is opposite. The... |
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