Study of moral hazard management in accounting intermediary organizations

摘要

Moral hazard is an unavoidable pessimistic proposition for the CPA industry. As China is currently in the midst of a grand social transformation, which extends to cultural, societal and economical facets of the country, the considerable uncertainty coming together with this grand transformation leads to marginal benefit of being moral and ethical, which in turn makes the social members' opportunistic choice a rational behavior. In the CPA industry, such problems as excessive competition, lack of shared beliefs between both sides of contract, and the unenforced social constraints opened a Pandora's Box. Therefore, establishing a healthy competition order, cultivating common beliefs and reconstructing social constraints should be the natural connotations for the moral hazard management of the CPA industry.