1、Differences in Auditing Problem of China and USA Analysis on audit independenceDifferences in Auditing Problem of China and USAAnalysis on audit independenceLiterature previewMany audit firms suffered audit failures recently in China and US1. Deloitte Touche became involved with Kelons scandals, giv
2、ing out unqualified audit reports on Kelons financial statements which contained material errors. KPMG was forced by the Chinese Ministry of finance to restructure. In Once again, the audit independence issue draws the publics attention.The audit failure case and analysis of China 2.1 China Kelon Ev
3、entPrior to 2002, kelon audit institutions is marsh, 2001, ST kelon full-year net loss of 1.5 billion yuan, at the time of Arthur Andersen ;because it could not perform satisfactory audit procedures to obtain reasonable assurance to determine all major transactions have been correctly recorded and f
4、ull disclosure; gives a audit report of refused to commit herself. In 2002, Andersen after enron subversion, its business in the mainland and Hong Kong into PWC, however, PWC GeLinKeEr and kelon both resigned ;hot potato;. Then, deloittes arrival for kelon audit the annual reports from 2002 to 2004.
5、On March 28, 2003, deloitte for ST kelon 2002 annual report issued by the audit report of reservations. In kelon that years annual report, by as much as $350 million of assets impairment return and projected liabilities, net profit of 200 million yuan.2.2 analysis of the caseAudit activities is a sy
6、stem process, will be affected by environmental factors. Auditors and accountants itself is the direct perpetrators of audit activities, also be determining factors in the success or failure of the audit. Among them, the independent audit is to prevent distortion of accounting information and an imp
7、ortant level of fraud. Signboard has international ;big four; accounting firm deloitte is not the good this way off, but in ;kelon;, this paper analyzes the causes of below is, look at what led to the deloitte audit failure.Economic motives: enterprise profit deloitte took this hot potato, from PWC
8、in nature is driven by commercial interests. Loose legal environment factors: the Chinese system, with four of the super national treatment, cause very low violation cost nearly two years a series of litigation, makes the fame of ;kelon; v. the bigger, deloitte also no less. International certified
9、public accountants now enjoy in our country of ;super national treatment; has received the widespread attention and criticism.Lack of independence: audit markets increasingly fierce and brutal monopoly competition has been a serious threat to the survival of the auditing profession foundation - inde
10、pendence, so audit failure is inevitableConclusion: in theory, the arrangement of the audit system purpose is to ensure that the audit report can reflect the actual situation. Auditors must be independent of the audit object, this is the key. Will not be able to exist between auditors and the audit
11、object economic interests and relationship in organization relationship. Because of this, independence has been regarded as the essential characteristics of the audit and the soul.Comparison?of?independence?China?and?USA?audit Complete form of audit independence includes the independence and the spi
12、rit of independence, the former refers to the audit, audit in addition to the power of attorney, between the principal and there are no concerns and interest relations, the independence from the organization, work, money and so on various aspects intuitive observation conclusion; The latter refers t
13、o a kind of attitude, belong to the category of auditors own quality and professional ethics. National audit institutions on behalf of the state audit, its independence is mainly displays in: audit institutions in organization, personnel and funds and the audit object without dependence or stakes.Ch
14、inaUSAOrganizationThe?government?audit?is?affiliated?to?the?State?Council?and?local?governments?at?all?levels?,?the?supervision?function?of?audit The?auditor?general?is?not?due?to?changes?of?government?and?a?new?Congress?and?people Audit of fundsThe?funds?included?in?the?budget,?be?guaranteed?by?the
15、?governments?at?the?corresponding?levels Application of funds directly to the state budget authority, budget not subject to government intervention.The?legal?system Auditing?standards?are?not?made?note?of?the?related?processing?power?and?economic?punishment,?operability?is?not?strong. American audit
16、 system of more perfect, audit supervision function of independent travelThe quality of personnelThe quality of the grass-roots auditor on audit independence is not high, do not understand the profound, single knowledge structure, lack of audit business knowledge and skills necessary,.Enterprise?tra
17、ining?system?strictly,?the?quality?of?personnel 3.1 The situation American audit independenceThe federal USA the Auditing Legislation type of national independence strong, mainly in the following two aspects:leadership has a detached position, effectively guarantee the independent work. The supreme
18、leader American accounting agency as its auditor, appointed by the congress named audit candidate and Senate election, according to the final election results, formally appointed by the president; long term audit time is long, and shall not be arbitrarily removed, for 15 years, do not change easily
19、because of changes of government and Congresssources of funding independent, ensure that the audit organ to effectively fulfill their supervisory duties. Independent USA Supreme Audit institutions in the use of public funds, bear the accountability of administrative authorities, because of this, mos
20、t of the developed countries and the developing countries have chosen the national audit system legislation type.3.2 The situation China audit independenceExecutive state audit Chinese seriously affect the independence of audit, and American is relatively weak compared. Mainly in the:The main respon
21、sible person position 1 of the auditing organ is relatively low. According to our law, audit by the premier of the State Council nomination, the National Peoples Congress decided to candidates, President appointment, tenure and government the same session, by the State Council appoints Deputy audito
22、r general. Tissue, auditing organs belong to the administrative system, and audited by an administrative leaders responsibility, thus the audit organ is mainly responsible for the nomination and appointment, by the peoples government at the corresponding level around and decide, serious impact on au
23、ditor independence.not enough independent special funds. Have a special funded national audit authority remains an important guarantee of good independence. While Chinas Audit Office under the State Council, under the leadership of the premier of the State Council, in charge of the audit work. From
24、the supervision of national audit functions have, audit department and finance department is the relationship between supervision and being supervised. But the financial department is currently auditing bodies in China funded by the supervision by the examination and approval. Budgets are not indepe
25、ndent, can not be guaranteed, will influence and restrict the audit work, it is difficult to guarantee the audit institutions play a supervisory role for the financial sector.improve our government audit independence measures4.1 The reform of the current audit systemThrough the comparison of our aud
26、it independence, audit system should be gradually from the administrative system to the legislative audit system. The implementation of vertical system of leadership in the leadership system, namely the province, city, county, state audit organs personnel, and funded by the National Audit Office uni
27、fied leadership and management.4.2 The establishment of the government audit in the legal statusIn our country, the national audit belongs to the highest organ of state power, but in the organization is independent, in power power to the supreme national reporting, received the highest authority sup
28、ervision, which is independent in the exercise of authority.4.3 rationally determining the source of fundsTo change the traditional mode, by the peoples government at the corresponding level funding is gradually transformed into a vertical leadership pattern, job auditor independence is not affected
29、 by objective factors, fully and accurately report.4.4 strengthening the audit personnel constructionFirst?of?all,?to?improve?the?audit?talents?working?mechanism,?selection?of?strong?professional?quality?of?staff;?secondly,?to?strengthen?the?training?work?of?audit?talents.?Encourage?the?audit?person
30、nel?to?participate?in?professional?qualification?examination,?adopts?the?combination?of?education?and?training?system?and?practice,?strengthen?the?audit?staff?skills.4.5 the implementation of the supervision of government audit, accept other institutions supervisionWe?can?check?each?other?through?be
31、tween?government?audit?personnel?at?all?levels?to?supervise?the?independence?of?audit?work.?China?can?also?set?up?a?special?supervision?of?government?audit?supervision?department?to?supervise?the?authenticity?and?validity?of?government?audit,?and?public?disclosure?of?government?administrative?audit?
32、information ConclusionThrough?the?comparison?of?the?China?and?America?the?independence?of?the?audit?found?problems?in?many?aspects?.?Audit?management?in?our?current?system?played?a?very?good?role?in?socialist?economic?construction,?but?also?has?some?disadvantages,?such?as?the?problem?of?local?protec
33、tion?and?administrative?intervention?is?still?very?serious,?affect?the?authenticity?of?the?audit?results,?some?problems?of?the?audit?identified,?it?is?difficult?to?timely?and?effective?solutions,?seriously?affecting?the?audit?quality?and?audit?organs?of?authority.?Therefore,?to?really?establish?the?authority?of?audit?work,?still?stay?in?the?country?of?the?audit?management?system?reform.小组成员：陈莉 陈蓉 陈晶晶 曽亦 齐伊莎 朱莉
