A Game Theoretic Analysis of the CPA System in Listed Companies
Cpa Ltd · 2006
the CPA auditing is an important external supervising mechanism of governing the financial fraud, and is it effective under our present CPA independent auditing employee system? In this paper, models are set up on the basis of Game theory to analyze the CPA system's efficiency, and draw the following conclusion that the CPA system is inefficient in China because of its serious internal corporate control and the fact that CPA offices are selected by the listed companies, whereas the situation may be improved if the CPA offices are appointed by CSRC (China Securities Regulatory Commission).