Abstract：The primary advantage of the market economy is that markets allocate resources rationally and efficiently by free flow of goods and services. Securities market is a derivative of the market economy’s development, which is an important factor of optimizing the resources allocation and promoting the economic development, but the ubiquitous information asymmetry has a negative-going effect. The effective method to lessen the negative influence of information asymmetry is independent auditing. The rational and efficient public auditing behaviors become the most important method to protect the interests of the medium-small investors and the institutional guarantee for the efficient allocation of resources.
1. Lack of the restriction for the CPAs’ improper behavior. The reasons leading the drawback of the external restriction are:
2. Lack of inspirits for the CPAs’ independent auditing behavior. ..................................

Table of contents
1. Introduction - 1 -
1.1 Research area and background of the project - 1 -
1.2 Research objectives - 4 -
1.3 Structure of the study - 5 -
2. Literature review - 6 -
2.1 introduction - 6 -
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2.2.3 The incentive and restrict mechanisms of independent auditing behavior - 9 -
3. Methodology - 11 -
3.1 Research aim - 11 -
3.2 Research approach - 12 -
4. Case study - 12 -
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4.2.2 Analysis of irregular audit behavior of “Zhongtianqin” - 15 -
5. Research findings - 20 -
5.1 Current situation of independent auditing behavior in China - 21 -
5.2 Analysis of reasons for undesirable independent auditing behavior - 23 -
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5.3.2 Establishing an incentive mechanism to encourage CPA’s standard practice - 38 -
6. Conclusions - 41 -
7. References - 45 -