Research On The Independence Of CPA’s Audit Business Under The New Code Of Professional Ethics

Independence,as the core professional ethics that certified public accountants must have,has been running through the whole audit business since the moment of the birth of audit.Investors,creditors and other statement users often refer to audit reports to understand,supervise and improve the operating status of the audited company.Due to the lack of independence of certified public accountants,issuing untrue audit reports often brings irreversible losses to report users.In order to develop the capital market healthily and orderly and purify the atmosphere of audit industry,the research of audit independence becomes urgent.This paper is based on the newly released Code of Ethics for Certified Public Accountants in December 2020,and focuses on the largest Code of Ethics for Certified Public Accountants in China No.4--Independence Requirements for Audit and Review Business.Based on the dual perspectives of accounting firms and audit clients,By means of questionnaire method and case analysis method,we investigate the changes and performance of the independence of the auditing business performed by certified public accountants under the new code,and draw conclusions after analyzing the reasons for the independence performance,and try to put forward constructive measures.After the investigation and study found that respondents believe that the impact of the degree of CPA independence is mainly reflected in the "economic interests","long-term business relationship with audit customers" and "family and private relations",that the impact of the least reflected in the "non-authentication services for audit customers".Finally,it puts forward relevant construction measures from three aspects of accounting firms,audit clients and social audit environment,and thinks that accounting firms should enhance the independence level of certified public accountants,and reasonably rotate accounting firms or appropriately expand the scale of accounting firms.At the same time,we can give full play to all social forces,formulate operational standards for social auditing,and strengthen the management of non-auditing business.