A Comparative Study on China’s Auditing Standards and International Standards on Auditing

Chen Yumeng

Abstract：With Chinas economic development，changing the domestic audit environment and making a new auditing standard has become a decisive factor for successfully integrating into the international audit business.

Key words：audit；standard；consistency；differences

In order to comprehensively connect with international audit，Ministry of Finance of the Peoples Republic of China issued China Standards on Auditing and Quality Control in 2006.In recent years，with the change of audit environment，the International Standards on Auditing has been revised a lot.To a large extend，the revised auditing standards have absorbed and learned from the newest achievements of International Standards on Auditing，which will have a sustainable and comprehensive convergence with the International Standards on Auditing.

1.Researches on convergence?phenomenon between Chinas CPA auditing standards and International Standards on Auditing

Chinas CPA auditing standards is fundamentally the same with the basic principle and core program of International Standards on Auditing.Meanwhile，it is basically the same with the objective and principle of auditing，assessment and response to risks，acquisition and analysis of auditing evidence，the formation and report of auditing conclusions.Moreover，it also keeps consistence with the contents of CPAs professional responsibility.However，Chinese CPA auditing standard has its own features.In contrast with the International Standards on Auditing，Chinas CPA auditing standard adds the communication principles between the preceding CPA and current CPA.The new auditing standard lays emphasis on the correlation of small-large enterprises auditing.This amendment has canceled the original Auditing Criterion for China CPA，No.1621—Special Consideration for Audits of Small-scale Auditing Unit.However，the part of “special consideration for audits of small-scale auditing units” is added in the application guide of each item.Such kind of this behavior makes stylistic rules and effectively improves the applicability of CPA auditing standard.

2.The effects brought by the amendment of new standard

The CPAs auditing behaviors are regulated，thus the industry drawbacks stand out.In auditing standards，the stipulation of auditing procedure becomes international convergence.Obviously，the accounting subjects are not willing to pay for the extra audit workload.If such contradiction cant be reconciled well，the CPA will formally meet the requirements of standards.Provide guarantees for Chinas participating in International affairs to a greater extent.Auditing is the product of social economic development.Chinas capital market is a newly-developing market，there exist many drawbacks，such as the small-size scale，imperfect basic supporting measures.Moreover，there arent enough influences to the development of auditing.The audits also cant play an important role in enterprises development.

3.Promote the convergence between Chinas CPA auditing standard and International Standards on Auditing from different aspects.

The formulation of Chinas CPA auditing standard is greatly taken the experience and methods of international standards on auditing for references.Because of the different social systems，cultural backgrounds，working environment and the publics different understanding degrees to CPA，Chinas auditing standards should both have convergence with international standards and start from Chinas national conditions.

The selection，cultivation and follow-up education of CPA should be vigorously enhanced.Especially the CPAs professional level and professional ethics should be paid high attention，thus can effectively implement the standards and improve auditing quality.The auditing standard about “special circumstances” should be specifically defined.Which circumstances belong to the regulated “special circumstances” in standards should be clearly pointed out.The enumeration method can be adopted and the method of generalization can also be adopted as well.Or the combination of these two methods can be adopted.

References

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