Study On The Independence Of CPA’s Audit Of Green Land Corporation

Independence has the very strong influence in the whole concept system of modernaudit,and occupies a dominate position. Independence is not only the CPA professionto the basic conditions of survival and long-term development of the industry,but alsois the core of audit,even determining the objectivity,truth and impartiality of the auditopinion. No independence, no audit authority. However, in recent years propertyfraud scandals frequently exposed around the world,such as United States Enron andWorldCom, Audit of Parmalat case and Yinguangxia in China and so on.A series ofaudit failure cases made public produce highly suspect on CPA audit independence. Inorder to maintain the orderly development of market economy and the legitimateinterests of all parties, and to promote the healthy development of registeredaccountant industry’s own, emphasizing and improving CPA audit independence hasreceived significant attention in the capital markets research.This paper studies the independence of CPA auditing as the object and our GreenEarth corporate finance frauds as an analyzing and explaining demonstration.Firstly,on the basis of understanding audit independence’s situation at home and abroad,clarify its concrete expression of lack of independence, then come to the factors thatinfluence CPA audit independence.After by analyzing the case, based on the factorsaffecting CPA of independent audit, and put forward strategies and suggestions toimprove the situation. Lastly,it comes to conclusion and causes reflection on theauditor independence.At the same time,it is need to put forward that CPA will facenew challenges in a particular industry.This article is divided into five parts:The first part is the introduction,it mainly expounds the researchbackground,significanc-e,method and method and framework about CPA audit independence.The second part makes a detailed study of green earth in the company’s financialfraud case, and describes the CPA audit in the course of the lack of independence andthe specific behaviors,in order that prepare further analysis on the influencing factorsof lack of independence.The third part mainly uses CPA audit independence theory.On the basis of a detailed analysis of the CPA’s role in auditing the Green Earth,it combines to therelevant theoretical knowledge, then analyzes CPA audit independence issue in theGreen Earth Corporation.The fourth part puts forward to countermeasures and suggestions that discusseffective countermeasures which improve the current situation of the CPA auditing inChina.The main countermeasures raised primarily pay attention to two aspects whichcontain both the external environment and CPA industry’s own perfect.The fifth part is the end of the paper text, mainly summarizes the researchconclusion in this paper, and put forward the enlightenment to trigger a reflection.