Research On Audit Independence Of Listed Companies Based On Audit Entrustment Model

Independence is the soul of auditing of listed companies.How to ensure and improve the independence of auditing has been the subject of our continuous research.Audit independence is divided into formal independence and substantial independence.Whether the formal independence is easy to judge from the outside,and the substantial independence as a psychological state,the lack of it is difficult for people to judge,causing audit failure.The reason is often that the CPA has been affected by the management authority and caused a substantial lack of independence.In foreign countries,a series of counterfeiting incidents of global famous companies such as AOL,Merck Pharmaceuticals,Global Communications,Enron,WorldCom,etc.,and a series of domestic companies such as Yinguangsha,Zhangzidao,Dazhi,Huaze Cobalt and Nickel Such as financial fraud cases with significant impact,in these events,the accounting firm responsible for external audit will often be punished for audit failure.According to statistics,the penalties usually include two points: one is the failure to perform due diligence and maintain due professional care;the other is the lack of necessary audit procedures and insufficient and appropriate audit evidence when conducting audit work.By analyzing the reasons for these two problems,we can learn that: firstly,external objective conditions prevent the CPA from conducting a complete auditing procedure;secondly,the CPA's substantial lack of independence makes it subjectively unwilling to be diligent and responsible.There is a possibility of“collusion” with the audited entity in silence.To solve the problem of the substantial lack of independence of certified public accountants,we must not only look for problems in the professional technical competence and ethics of certified public accountants who provide audit services.Instead,we should study from the more fundamental audit commission system reform.With a view to seeking a breakthrough.This article focuses on the central issue of improving the audit commission model with a view to improving audit independence.First of all,it brings out the problems,and elaborates the background of the lack of audit independence caused by the audit commission model in the currentsocio-economic background.It also discusses the current status of domestic and foreign research on how to improve audit independence by reforming the audit commission model.Made a classification and analysis,including many possible solutions proposed by previous people to improve audit independence.Then,it analyzes the problem theoretically,mainly expounds the basic concepts related to audit commission mode and audit independence,and theoretically analyzes the necessity of improving audit commission mode and enhancing audit independence.Then,it summarizes the current situation and specific problems,elaborates the current status of the current audit commission model of listed companies in China,and summarizes the problems existing in the current audit commission model of listed companies in China in recent years,and analyzes the causes of the problems in the audit commission model.Most importantly,to solve the problem,according to the proposed analysis of the status,problems and reasons of the existing audit commission model,under the inability to change the internal and external environment that led to the existing indirect commission model,theoretically put forward the “China Note Association--The audit commission model” of “separation of selection and employment” jointly participated by the “Audit Committee”,with a view to improving the existing audit commission model and enhancing audit independence.In addition,through the actual demonstration of whether the problem can be solved,by introducing the analysis of Huaze Cobalt Nickel audit failure cases,the defects of the current audit commission model are further discussed from specific cases,and the audit commission if “selection and recruitment separation” is adopted The role that the model can play in this case demonstrates the necessity of improving the current audit commission model and the superiority of adopting the “separation of selection and employment” audit commission model.The last part is the conclusion and outlook.Two main conclusions are drawn.First,in order to solve the problem of audit independence,it is necessary to reform and improve from the source of the audit system--the audit commission model;The audit commission model of “separation of selection and employment” jointly participated by the “Selection committee” can contribute to the improvement of audit independence,and put forward somesuggestions from the perspective of other relevant support policies.The research significance of this paper is to find the problems and propose countermeasures from the perspective of the audit commission mode at the source of the audit work of listed companies in order to solve the problem of audit independence.By analyzing the impact of the audit commissioning model on the substantial lack of audit independence,the problems of the audit commissioning model of listed companies in China have been raised,and the theoretical and practical experience of the audit commissioning model at home and abroad has been drawn up.The audit commission model of “separation of selection and employment” jointly participated by the “Selection committee” can adapt to the internal and external environment of the audit work of listed companies in China,and through theoretical and practical analysis,it can help improve the independence of listed companies in China.