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"Paradox of Punishment" in the Auditing Process of the Public Company’s Accounting Reports

Author: ZhengJiong
Tutor: MaChunWen
School: Jilin University
Course: Western Economics
Keywords: Dynamic game Imperfect information Certified Public Accountant Listed companies
CLC: F239.4
Type: Master's thesis
Year: 2005
Downloads: 294
Quote: 0
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Abstract


This article from the point of view of dynamic game analysis of accounting information distortion . Through the establishment of an imperfect information game model , derived the probability of choosing a different strategy in equilibrium , the listed company and a certified public accountant , and analyze the impact of various factors on the probability . According to the analysis , the following conclusions : to improve the quality of accounting information to start from the management of certified public accountants , increase punishment of certified public accountants , to improve the efficiency of the audit ; increase fraud penalties listed companies , you will not achieve inhibit the accounting the role of fraud , it would only encourage lazy certified public accountant , is not conducive to the improvement of the quality of accounting information . Based on the above analysis , combined with China's actual paper given a series of methods to improve the quality of accounting information for the different participants in the securities market , which is the most important , the most direct way is to improve the efficiency of Certified Public Accountant 's audit , start CPA Audit responsibilities civil compensation mechanism .

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CLC: > Economic > Economic planning and management > Audit > Various types of audit
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