The Design And Feasibility Research Of Financial Report Insurance System

The current audit system provides that the listed company can choose the audit unit autonomously,and it provides that the listed company can pay the audit fee directly to audit unit.In recent years,the financial report fraud cases indicate that the pattern of audit entrustment may make the auditor's independence subject to the audited entity.In order to solve this problem,theorists put forward and practiced many methods,but failed to solve the problem of independence fundamentality in end.Professor Ron,based on the work of previous studies,put forward the innovative proposal of the financial reporting insurance system concept.Financial Statement Insurance system provides that the listed company does not hire audit unit to audit its financial reports directly,But by a qualified insurance company to offer the financial report insurance,in order to insurance pricing,insurance company will employ special auditors to audit the financial reports of the insured companies.The insurance companies consider whether to accept the orders according to the audit work.The insurance company will determine the premium and coverage at the same time.When the insured company's financial report is reported a major fraud or misstatements,and the stakeholders is damaged,the insurance companies need to compensate these stakeholders accordingly.The financial report insurance system can improve the independence of the CPA by changing the former audit charging mode greatly.The new charging mode will makes the CPA pay more attention to the auditing content rather than the management's attitudes of the audited unit.Compared with the measure,introduce the supervisory organization to enhance the independence of CPA,the institutional reform can solve the problem of the independence of CPA fundamentally.In the first part of this paper,the background of the financial report insurance system is expounded firstly.Then the status and problems of audit market in China are discussed.The reasons and solutions of the problem are analyzed,and the financial statement insurance system is introduced.In the last part of the paper,we will introduce the contents and the characteristics of the financial statement insurance system,and then discusses how the financial statement insurance system can solve the problem of independence of CPA.Finally,the game theory will be used in the design and implementation of the financial statement insurance system to research the technical difficulty and the solution method.The main significances of this paper are as follows:The First is the theoretical significance.Although Professor Ron proposed the concept of financial statement insurance system in 2002,this idea still needs to be improved in many details,and the theoretical circles still lack further research on this part.This article can be useful for the research of this aspect.supplement.The second is the practical significance.In recent years,financial statement frauds are emerging in an endless stream,it seems that the CPA can't avoid the issue of dependencies.How to solve this problem has a direct practical significance.This article is arranged around the practical problem of this issue.The third is the innovation.In the final analysis,the nature of auditing independence is the interest game,and the traditional research on the financial statement insurance system mainly adopts the method of deduction and induction.In this paper,the game theory is used to demonstrate the design and feasibility of the financial statement insurance system.This method has innovation.