Chognqing CPA Industry Supervision Research

Certified Public Accountant(CPA)is called ‘Economic Police'.CPA audit is an important part of national economic supervision.Independence,objective and justice are basic principles of CPA.Since CPA system was recovered in 1980,it played a positive role in improving accounting information quality,maintaining market economic order and protecting interests of public investors etc.However,due to the malpractice of current audit entrustment system,companies can seek more economic benefits through false accounting information and with the lack of quality control of accounting firms and improper audit process,a series of significant accounting fraud and audit failure cases occur,bringing the CPA industry into serious trust crisis.Since 21 th century,many countries made some adjustments on CPA industries based on practical situations,strengthening supervision on CPA industries,especially audit quality.Since Chinese Ministry of Finance took back the administrative supervision right in 2002,administrative supervision dominates industry self regulation.The author,who has some related knowledge and research,has worked in CPA industry supervision for many years.The author firstly has checked many literature on CPA industry audit qulity and supervision mode.On the comparison of three domestic and overseas popular patterns,namely governmental supervision,self-discipline and independent control,the author has analyzed their individual practice,advantages and disadvantages.Secondly,through cases studies,we found that in Chongqing,necessary auditing procedures had not been practiced,audit advices were given under insufficient evidence,even those advices were false.Also the author has analysized the theoretical and realistic reasons for those audit quality problems on the basis of research and investigation.Then it was revealed that the supervision efficiency was low,the supervision force was inferior,the industry has few prospect,and the power was weak in Chongqing CPA industry supervision.Lastly,by investigation and factors' analysis,the author proposes that in order to analyze the paths to improve the Chongqing CPA industry supervision on audit quality,we should improve the supervision efficiency?the supervision force?guide on industry development?train the supervision practitioners,and strengthen the association's service functions.Appropriate supervision modes are finally found for the current Chongqing.On the basis of above modes,the next step of supervision mode is envisaged.