Major Shareholder Resources Encroachment And Independent Audit Supervision

In recent years,fighting for the control rights of listed companies is not uncommon,as the largest residential lighting business in China,the case of NVC lightingprovides a good research direction for the independent audit of the role of how to achieve the desired effect.It puts forward to the background of the audit system reform firstly,then elaborates the concept and the basic theory of the independent audit,introduces the function of the independent audit,states the background,content and the inner purpose of the key of auditing matters.As an example,adopting case analysis to make a detailed description of the phenomenon of the entrepreneurial shareholder Wu Changjiang which get the expropriation by his absolute control rights of NVC lighting,but the independent audit can not play the role of supervision and control to the company,and in essence,employed by the company's major shareholders,finally issued a standard audit report.This paper argues that the phenomenon is caused by the fact that the previous standard audit reporting model provides soil for its unqualified auditor's report,and on the other hand because of the limitations of the firm's employment mechanism,the independence of auditor's is not enough and so on.Therefore,the conclusion is that since the implementation of the independent audit system,the governance of listed companies in China has played a certain role in promoting,but under the current economic situation,the management of listed companies make the actual control through the excess control of Board seats,the actual possession of corporate resources and so on,whether the auditor issued a standard audit report depends on thus reasons,in such circumstances,it is difficult for the auditors to keep their independence,how can it play its role in supervision and checks and balances.To improve the content of information and transparency of the audit report,in September 2014,the International Auditing and Assurance Standards Board(IAASB)adopted the revised audit reporting guidelines.At the end of 2016,12 core audit standards have been revised and formulated.Under the direct background of improving the independent audit system,this paper proposes to strengthen the supervisory checks and balances of the independent audit from this entry: Through the implementation of key audit issues disclosure rules to enhance standards of rigid,by reforming the accounting firms employ mechanisms to strengthen auditor independence,through the establishment and financial statement insurance system in order to reduce the risk as much as possible,and to suggest how to make the independent audit function better,such as improving the audit independence,promoting financial statements insurance system,looking forward to provide a useful reference to the future of listed companies to improve its operating mechanism and corporate governance,protect the rights and interests of shareholders.