In 21st century, World economics develop swiftly. But at the same time, the accounting information of enterprise distorts, internal government is out of control, financial fraud frequently expose. All these have caused large quantities of business failure, the investors’benefit is unable to safeguard, while the country suffers the heavy loss. As the important social mechanism of guarding financial fraud, assuring the economic security, the accounting firms are involved in these cases in abundance. So people start to carry on the question on CPA’s prestige and independence. The quality of audit report provided by CPA also makes people worried. In view of this, theorists started to initiation attention and research on audit quality. In numerous factors that influence audit quality, the board of directors—-as the core of company management structure, who also link with the independent auditors, definitely will influence the audit quality.This thesis starts from board of directors, discuss the relevance between it and audit quality by the angle of audit object. This thesis first divides the board of directors characteristics into nine aspects, board size, duality of board leadership, the proportion of independent directors and executive directors, the establishment of audit committee, the directors of financial specialized background, the participation frequency of board of directors, the member who holding the stock proportion in the board, the member quantity in the board, which reflect the independence, specialization and behavior characteristics of board of directors. Then analyzing the governance mechanism of the board and audit quality from the theory angle, and discussing relations between them initially. Next this article analyzes the relevance between the board of directors characteristics and the audit quality and proposes examined suppositions on the basis of the literature review. Then with the research sample of A-shares Chinese listed companies in 2007, using the factor Analysis method to carry on the quantification to the audit quality by 7 factors of accounting firm scale, prestige, audit opinion, audit scale of charges and auditors specialization, finally obtaining the relationship by multiple regression.These thesis main conclusions include: it is remarkable positive relation between board size, the directors of financial specialized background and audit quality, and it is remarkable negative relation between the proportion of executive directors and audit quality; it is not so clear relation between the duality of board leadership, the proportion of independent directors, the establishment of audit committee, the participation frequency of board of directors, the member who holding the stock proportion in the board, the member quantity in the board and audit quality. This thesis carries on the special analysis to these conclusions, and proposes the related suggestions of consummation independent director system, strengthening the construction of audit committee, the reasonable establishment leadership structure, increasing the function which the stockholder’s rights drove, increasing the number of directors of financial specialized background, strengthening the substantive of the board of directors’conference. And simultaneously put forward some proposal of enhancement of audit quality from the exterior angle.
Economic Responsibility Audit Evaluation System for the District-counties CPC and Governmental Cadres in Their Duty-periods
At present our country area county party politics the leading cadre tenure in office economic accountability audit appraisal system’s research still to be at the start stage, the appraisal system’s establishment question were audit the worker, to audit at present the question which the unit, the organization and personnel department institute faced together. This article through the leading cadre tenure in office economic accountability audit appraisal background to the area county party politics the analysis, in the elaboration establishment appraisal system’s feasibility, the feasibility and the necessary foundation, combs many questions which the establishment appraisal system’s difficulty and should note. The paper obtains from the appraisal system establishment’s content and the evaluation criteria two aspects, which aspects should the selective analysis appraisal system establish from with the rightly appreciate, and adopts the quota and the qualitative analysis unifies, macroscopic and the microscopic target unifies and so on many kinds of ways, to deepens the leading cadre tenure in office economic accountability audit appraisal system with the advancement establishment area county party politics to lay the foundation.Generally speaking, may use the comparative analysis and the generalized analysis unifies, during the analytical study area county party politics the leading cadre tenure in office economic accountability audit appraisal, the introduction such as plan statistics, the finance financial norm caliber and the performance audit, the policy-making audit related evaluating indicator, carries on the appraisal comprehensive. May also the macroscopic analysis and the microscopic analysis unifies, the party politics the leading cadre to shoulder some local, some department or some unit’s economic development and the enterprise develop the duty, must carry out the national macroeconomic policy and the socio-economic development plan. Therefore when establishment appraisal system, both must base in reflects an local the microscopic economic activity, and must focus in the reflection macroeconomic policy and the macroscopic development plan carries out the situation.The establishment area county party politics the leading cadre tenure in office economic accountability audit appraisal system faced with many difficulties: In evaluating indicator’s macro economic responsibility limits difficult, the macro economic responsibility mainly to inspect the gross national product, the price and the expense index, the social commodity total volume of retail sales, the labor employment, the capital coin delivery and re-steaming and so on economic indicator, take the existing auditing technique method and Audit body oneself as the factor, can stand in the macro economic looked highly question the talented person are also very few, in addition external economy environment complexity, polytropy, in the limits in leading cadre’s macro economic responsibility, still had certain difficulty; The determination economical responsibility’s undertaker is difficult, some economical responsibilities belong to the collective behavior, but must decompose this kind of responsibility to each party politics leader is very difficult to divide.The leading cadre tenure in office economic accountability audit to the responsibility which in the leading cadre tenure in office the work achievement, the existence question and should take to make the appraisal, establishes the science, the standard audit evaluation criteria to improve the audit quality, the guard audit risk, has the very vital significance: The appraisal system’s establishment is advantageous to the standard audit operation, both can reduce auditors’ subjective capriciousness and blindness effectively, and can the standard audit operation sequence, and is advantageous to the practical guard audit risk; The appraisal system’s establishment is advantageous to the unification appraisal criterion; The appraisal system’s establishment is advantageous in the quantification cadre inspects, the cadre Control section leading cadre’s inspection, the assign to the party politics from to stress gradually in the qualitative inspection vectorization inspection transformation; According to after the examination data, the computation analysis related economic indicator, may and uses the cadre for the party committee and the government macro economic decision-making to supply, the reliable information accurately correctly.This article studies the limitation is mainly: The system research aspect involves the case study to be few, the following research may obtain from the case analysis, attempt construction empirical analysis model; The appraisal system mainly concentrates in the sub-item description evaluating indicator, but describes the overall target to be few, the following research may through rank ways and so on system appraisal, grading system appraisal further consummate the appraisal system.
The Legal Problems and Standardized Construction of Chinese Economic Responsibility Audit
Economic responsibility audit is a unique audit supervision form of our country. It is a very important system both to enhance the restriction and supervision of leader’s rights and to improve the socialistic politics civilization. The development of economic responsibility audit conduces to improve the level of government management and enterprises’management decision, which also can strengthen the leader’s surveillant management, prevent and deal with corruption and advance the party ethos and integrity construction. The audit result even is an important regulation for judging and selecting leaders correctly.With years of development, economic responsibility audit has become an important part of our auditing. The attentions and discussion of all social circles is becoming increasingly intense. Because there is weakness in laws and regulations, theory systems and practices, it restricts the effect of audit development and supervision to a certain extent. The aim of this article is to find out the problems existing in laws and regulations of audit practices through the research of Chinese economic responsibility audit theory and practice, as well as to table a proposal on the basis of using the overseas experience of performance audit, which can offer the references for improving our legal system of economic responsibility audit. Therefore the audit supervision could take full effect.The article investigates the status quo of our economic responsibility audit’s development on the basis of its practices, as well as to analyze the problems existing in this kind of audit. It also proposes an outline of improving the legal system of economic responsibility audit through the successful experience of the developed countries’performance audit. All the above is discussed from the legal point of view. Because of the faultiness of economic responsibility audit’s development, there are still some problems in theory and practice. The limitations are as follows.First, there are no perfect standard systems or laws in audit theory including audit object selection, responsibility definition and so on. Second, it lacks for the uniform audit practice guides for audit content, object, procedure and method. Third, it is short of the scientific estimation system to define the economic responsibility and judge the leaders correctly.From this article’s opinion, in order to improve the legal construction of economic responsibility audit through the practice analysis, we should fulfill the following three parts of work. First, we should improve the legal and institutional construction of economic responsibility audit through establishing a practical guide like Economic responsibility audit law or Economic responsibility audit regulation. Only in this way can we insure the audit independence, justice, publicity and equity. Second, in order to define the audit object, content and procedure, we should make and improve our economic responsibility audit practice criterion. Third, the economic responsibility audit estimation system should be established well to shape an relatively uniform and practical evaluation system.
The Disquisition on Litigation Issues of the Procedures of the Examination, Sanction and Arrestment in Chinese Procuratorial Organs
The characteristics of the criminal prosecution are not only incarnated through the judicial procedure ,and the pretrial procedure is also an important part of the criminal prosecution . At present, the judicial procedure of our country has achieved its litigation, but the degree of the litigation of the pre-trial procedure is not high,even can be said that the litigation of the pretrial procedure has not yet been achieved. If the litigation of the pretrial procedure can not be achieved, then the entire criminal activities become the combination of the administrative offenses procedure and the judicial procedure that are incompatible with each other, and at the same time the non- litigation of the pretrial procedure affects and restricts the litigation of the judicial procedure. The procedures of the examination and arrestment in our procuratorial organization are an important part of pretrial procedures ,but there still exist non-litigation defects to make it administrative, prosecutive and redressing emptiness and get sth. done once and for ever. The existence of these shortcomings, first of all, from the structure, the procedures of the examination and arrestment lose of the appearance of its due process; Secondly, from a functional point of view, they weaken the function of protecting human rights in the procedures of the examination and arrestment;thirdly , from the concept, the procedures of the examination and arrestment damage the judiciary authority ; Finally, from the point of view, to review of the results, the procedures of the examination and arrestment don’t play the role of appeasing the disputes.Making a comprehensive view of the world two genealogies of law,we know that audit programs take on the form of litigation ,aimed at the application of coercive measures for custody. The procedures of the examination and arrestment in our procuratorial organization considered as the important part of the criminal prosecution and the judicial review processes should be carried out the reconstruction of the litigation in order to achieve “the return to form of litigation.”As for the reconstruction of the procedures of the examination and arrestment in our procuratorial organizations, the main idea is to introduce the concept of neutrality, the antagonizing mechanism of the litigation under the restriction of the mode of the original supervising custody-power, in view of the mode of foreign judicatory authorization and almsgiving in order to achieve the litigation of the procedures of the examination and arrestment in our procuratorial organization. In the procedure of the reconstruction to follow : (1) the principles of judicial review (2) the principles of the protection of human rights (3) the principles of gradual and orderly progress . The specific assume is divided into two steps: the first step is to reform the methods of the procedures of the examination and arrestment without amending the law in our procuratorial organization and to establish two systems:one is the testifying system of the necessity of arrestment ,the other is the system of inquesting the suspected offendersand listening to the views of his consigned lawyers.The second step is bying amending the relevant laws, China’s procuratorial organizations realize the litigation of the procedures of the examination and arrestment. Specifically speaking , (1) The principles of the division of labor, interwork and mutual restraint in the police , procuratorial organizations and the court are abolished. (2)The lawyers in the detecting procedure are endowed with the status of the defenders in order to strengthen the principal status of paracletes and defendants and achieve the balance between accusation and vindication.(3) The form of the examination and arrestment changes from the administrative examination to trial-and-be re-written internal audit-combination. (4)The arrested people who don’t obey the decision are endowed with the right of almsgiving.This article is divided into four chapters. The first chapter introduces the status quo of the procedures of the examination, sanction and arrestment in chinese procuratorial organs. The second chapter focuses on the behooving and inevitability of the prosecution in the procedures of the examination, sanction and arrestment. The third chapter gives a brief introduction of the mechanism of foreign custody. The fourth chapter mainly discourses upon the assumption of realizing the prosecution in the procedures of the examination, sanction and arrestment in chinese procuratorial organs.
Market Reaction to Going Concern Audit Opinions
The auditor has a responsibility to evaluate whether there is substantial doubt about the entity’s ability to continue as a going concern for a reasonable period of time, not to exceed one year beyond the date of the financial statements being audited (hereinafter referred to as a reasonable period of time). The auditor’s evaluation is based on his or her knowledge of relevant conditions and events that exist at or have occurred prior to the date of the auditor’s report. In US, SAS 59 requires auditors to evaluate the viability status of their clients as part of every audit examination and provides guidance to the auditor on steps to be followed in making such decisions. The auditor should seek and evaluate contrary information, as well as factors tending to mitigate those conditions and management plans for rectifying the underlying problems. If the auditor concludes that substantial doubt exists about the client’s continued existence, the audit report must reflect that conclusion. Contrary information maybe defined as any evidence (problem) that raises doubts about the entity’s ability to continue in existence, whereas mitigating factors relate to information that reduces the auditor’s doubts. However, for subjects in the viability frame, it is expected that contrary information (mitigating factors) will lead to a decrease (increase) in beliefs. This paper firstly reviews the evolution of American going-concern auditing opinion, so we can know the essence of this kind of auditing opinion. And on the base of analyses the conditions of going-concern of Chinese enterprises, we draw our conclusion that Chinese capital market urgently demands going concern auditing opinion.This paper is intended to test the market reaction to going concern audit opinions based on empirical evidence from China’s security market. My results show that price responses to going concern opinions are, as predicted, more negative than firms not receiving going-concern opinions. Section 1 presents the background of this paper. Section 2 presents the theories related to this study. In sections 3 and 4 I present my hypotheses, my sample selection procedure, summary statistics and empirical results and in section 5 I provide concluding remarks. This paper’s results present theoretical and empirical guidance for understanding going-concern auditing opinion’usefulness, the information content of going concern auditing opinion as well as the mechanism of auditor to provide this kind of opinion.With the adoption of new standard, the Auditing Standards Board replaced a passive responsibility with an active responsibility imposed on auditors to assess the likelihood of a client’s continued existence for one year from the date of the financial statements. Although the information content of going-concern audit opinions is negative, the information users have not totally emphasis on the impact of going concern opinions. Therefore the information users, especially the investors, should pay attention to the role of going concern opinions.
Study of Problems and Their Corresponding Solutions during the Implementation of Internal Control in the Construction Enterprises
The development of the internal control has experienced long historical process,the internal control theory developed along with the experience of the internal control rich in enterprise, but the modern significance development of the internal control is actually after the modern times industrial revolution in particular 20th century starts. Analysis internal control development course, these theories that popular today are nearly all origin from the audit research area, and development became an interdisciplinary science including accounting, audit, management, sociology and so on. The study of the internal control in our country was late,the theorists start to this domain exploration until at the end of 1980s. In recent years, more and more problems in internal controls have occurred in corporations/enterprises of our country and the spread of problems appears wider and wider, which has seriously threatened the existence and development of the enterprises. Theses problems show that it is weak in the basis of internal controls in enterprises and the management level is not high, also indicate that the normalization and guidance with theory are still needed to have a refined internal control system.Although our country has appeared a series of regulated documents of internal control, but these documents were only aimed at common enterprises and general services, not at special project. The internal control in construction enterprises has the enormous particularity and the complexity, it was based on this goal that this article is in line with strengthens and consummates the internal control in construction enterprises, setting an example of the internal control system in the S construction enterprise, and analyzed the present and the problem of the internal control in construction enterprises with the newest internal control theory, also found the weakness, then studied the countermeasure to solve these problems.The article consists of four parts, each part contents: Part 1,the history and the appraisal of the internal control. Elaborated the present situation of the internal control, and reviewed the development process of the internal control. Approximately divides into four stages: Internal diversion time, internal accountant control and the management control time, the internal control structure time, the internal control overall frame (risk management frame) the time, and proposed the significance and the limitation of the internal control.Part 2, implementing internal control system in construction enterprises. This part took the S construction enterprise as an example, carried on the analysis by the S unit’s service flow and management characteristic obtaining, from the risk management angle, pointed out the goal of the construction enterprises, and according to “Enterprise Risk management Frame” with the COSO committee in 2004, elaborated the present situation and the problems in implementing the internal control system of the construction enterprises.Part 3,design of the internal control system of the construction enterprises. This part pointed the problem which existed in the implementation internal control in construction enterprises, then established the overall frame, the essential control point of the internal control in construction enterprises, and appraised it. According to the eight factors of the enterprise risk management and the own characters of the construction enterprises, established its frame, through analyzed its characters, proposed five key points of the internal control system, and elaborated in detail.Part 4, According to the risk management theory, proposed measures to consummating internal control system of the construction enterprises, including consummates the external environment; strengthens the outside supervision; established the internal structure of the construction enterprises and strengthens the soft control.This article anticipating achieved in forming the basic frames and reference points of internal control of the construction enterprises, and implemented internal control system with the soft control. Under the good frame control system, the construction enterprises can be supervised in every procedure, costs can be reduced and rational investment can made.
An Empirical Research on the Factors Affecting Corporate Governance Efficiency
Based on the result of division of labor in society and the lager-scale production, the separation of ownership and management right in enterprises appeared in modern company. Isolation of the two issues has led agency problem. Corporate governance came out. The essence of corporate governance is for solving the agency problem.An effective system of corporate governance includes external and internal governance. External governance is through external market competition mechanism to influence corporate governance. Internal governance is a series of internal arrangements. Internal governance is the core of corporate governance. If internal governance is imperfect, external governance will lose the basis to play. In the circumstance of failed external governance, we will strengthen internal governance to upgrade the quality of corporate governance. So researching corporate governance efficiency should stress internal governance structure. But the internal governance efficiency can not leave the impact of external governance. So the paper is to research that internal governance structure is how to influence corporate governance, based on external governance established.The progress toward a market-based modern corporate China started after The Third Plenary Session of the Eleventh Central Committee of the Communist Party of China. Compared to foreign developed countries, our corporate governance started late. The problems of corporate governance at a deeper level still remain. All these have seriously affected the corporate governance efficiency. Some of our listed companies reduced to ST, PT. A very important reason is lack of corporate governance efficiency. Lacking of corporate governance efficiency creates enormous negative influence to stakeholders. China’s securities market is also adversely affected. The main task of the paper is to analyze factors which impact corporate governance efficiency, based on company’s internal governance structure. First, the author has an overview of existing research results. Then, the author combines China’s A-share market data from 2002-2004 to analyze these factors highlighted in this paper whether have marked impact to the corporate governance efficiency or not. I hope my research will give our companies someavailable references.The article consists of four chapters:Chapter one: Introduction. This chapter includes background of this research, research paths and research significance. The main purpose of this chapter is to show the direction of research and research value.Chapter two: The definition of related concepts and theories review. Through the related concepts and relevant theory, it shows the basis of this paper, the core of the research and the theoretical basis of research.Chapter three: The internal governance structure elements. This chapter is the core section of this paper. It is divided into four parts: the analysis of the internal audit; the analysis of the board of directors; the analysis of supervisor committee; the analysis of ownership structure; the analysis of board of directors is the core of this chapter. It is divided into six major components, including board size; independent directors; the relationship between the board and the senior management; meetings of the board; executive compensation; the sub-committees of the board; the analysis of the internal audit is another core of this paper. It explains the important role of internal audit in corporate governance. This is also an overlooked point in previous research.The main purpose of this chapter is to do comprehensive analysis of the factors of corporate governance efficiency, including theoretical research and empirical studies. Through the analysis of this chapter, it provides relevant theoretical guidance for the chapter behind.Chapter four: Empirical research. This chapter is also the core of this paper. This chapter includes four parts: research design、sample selection and data sources、the research process and conclusions and、research proposals and limitations. The research process and conclusions are divided into t value test、multiple regression analysis, further analysis. This chapter is on the basis of Chapter III. It does further empirical analysis of the factors affecting corporate governance efficiency. Variables are as follows: ST companies are interpreted as a variable. The explanatory variable is introduced into Board size、The proportion of independent directors、The number of sub-committees of the board、The two posts concurrently ratio、The scale of the board of supervisors、The number of the board meeting、The number of the board of supervisors meeting、Executive compensation、Percentage of state-owned shares、Percentage of corporate shares、The proportion of shares held by management and Shares concentration.ST companies are notable represents which are lack of efficiency. Therefore, ST companies are alternative variables in the empirical part of this paper. First, through analysis and comparison with non-ST and ST companies, the author explains t values of the difference between the two parts. Then, the author does more in-depth analysis through multiple regression analysis. Combining t value test and multiple regression analysis, the author obtains the factors of corporate governance efficiency. Then, the author investigates the situation of these factors after one year. Finally, the author sums up the conclusion of the research、puts forward recommendations and points out the limitations.The author finds the proportion of independent directors、the number of sub-committees of the board and shares concentration have a marked impact on the efficiency of corporate governance. Other variables also affect corporate governance efficiency, but the impact is not significant.Contribution and Innovation in this paper are as follows:Research content: This paper presents the factors which are more comprehensive. In most studies, internal audit variables are not included in the factors of corporate governance efficiency. From the perspective of practice,internal audit plays an increasingly important role in corporate governance. So it is innovative. In this paper, after finding the factors which impact corporate governance efficiency, I do a further analysis.The method of the research: In this paper, research methods are Comprehensive. The author uses theoretical and empirical analysis. Through theoretical analysis, the author has explained some questions about the proposition; through empirical analysis, the author has proved the existence. Two methods confirm each other, which have strengthened the explanation strength of argument, and have supported proposition.
The Research on Shanghai Overseas Direct Investment System
It covers wide aspects to construct a service-orientation government. One of those important aspects is to provide public services, which, in the development of foreign economic relations and trade, means the construction and improvement of the government’s ODI service system. In recent years, along with the development of Reform and Opening up of china, the foreign economic relations and trade of Shanghai is ranked in the front of china all along. However, the developing of our foreign economic relations and trade was started up later than those developed countries. In the 70s of 20th century, as the reform of foreign economic system started, the development of foreign economic and cooperation was also initiated in Shanghai. The period from the 90s of 20th century till the beginning of the 21st century is very special for Shanghai in terms of the development of foreign economic relations and trade, among which the government of Shanghai took a series of steps to deepen the Reform and Opening up, and to boost the development of foreign economic relations. In the 21st century, the government of China brought forward the”Go Abroad”stratagem and encouraged the enterprises to invest overseas. In the past 30 years, the overseas direct investment of Shanghai grew fast, and kept on in the front of china. But, as mentioned above, the start-up of Chinese overseas direct investment was later than the developed countries, therefore, the research on the overseas direct investment service system was not indeed started until 2006, which was spread after the publication of The CPC Central Committee Decisions About Some Important Problems In The Construction of Socialism Harmonious Society which brought forward the idea of constructing service-oriented government and reinforcing social management and public service functions. According to this decision, the Shanghai government changed its functions to practice management in service, and to provide service in management. Even so, the research for the government of how to support the enterprises to invest abroad was not deep enough and systematic, and there lack of deep investigation on the various mechanism and system issues involved in the procedure of perfecting the overseas direct investment service system. In this thesis, the emphasis are put on the analysis of why it is difficult for the enterprises to”go abroad”, and on how to perfect the overseas direct investment service system in various aspects.In this thesis, the theory basis for the ODI service system will be introduced first, which includes service-oriented government, new public service theory and the details of ODI, FID and ODI services. And the theories of overseas investment services and government service system will also be described. Then, the development history of Shanghai FDI service system will be reviewed and divided into three stages for introduction which are start-up stage from 1978 to 1991, step-up stage from 1992 to 2000, and fast developing stage from 2001 till now.The issue of About the Expediting of Implementing”Go Aboard”Stratagem Guidance in Shanghai and its relevant rules published in 2001 was an important indication to the further reinforcement of Shanghai ODI service system. Whereas, it should be noticed that there are still many aspects in the system need to be improved, which includes the offside government management, inefficient government regulation and not-complete government supporting and servicing functionalities. All these weakness, in a certain extent, embarrassed the development of the enterprises in Shanghai.To improve the ODI Service system in Shanghai, the thesis uses the ODI service system experiences of the developed countries for reference, and presents some ideas in five aspects, i.e., financial support and encouragement, promoting of the development of non-government overseas investment service institutes, building efficient and uniform information service platform, enlarging the cross-governments cooperation, and the further simplifying the foreign exchange management procedures and the reinforcing the supervision. The financial support and encouragement include establishing corresponding financial tax and financial preference policies, setting-up overseas investment developing fund, building overseas investment reserve fund, encouraging the import & export banks and commercial banks to release more credits to the enterprise running overseas, and further simplifying load approving procedure and developing inspiring tax-favourable policies. Promoting the development of non-government overseas investment service institutes includes supporting the domestic industry of overseas investment agency, and providing services for enterprises to go abroad. Building efficient and uniform information service platform includes providing consultant service for overseas merge, speeding up the training of overseas merge expertises, and completing the overseas merge law system. Enlarging the cross-governments cooperation includes further reinforcing the protection for overseas investment, and signing the investment promotion memo between governments. Further simplifying the foreign exchange management procedures and reinforcing the supervision includes unloosening the auditing right of the foreign exchange origin as well as asking the Chinese investing enterprises to routinely report their overseas operation status to related departments. Hope all those analyses and suggestion will help the construction of the ODI service system in Shanghai.