Game equilibrium analysis framework for auditing collusion

Auditing collusion phenomena are very common in present auditing environment,and the double auditing system can be seen as a policy to deterring the phenomena.After we analyze the causes of it,a game model,including the probability factor of introducing the second auditor,exterior supervision,punishment and reward mechanism,is constructed to analyze the equilibrium conditions for deterring auditors from the auditing collusion.The conclusion is that,if we enforce outside supervision over auditors and design suitable reward mechanisms, the system is very beneficial to lower the cost of supervising auditors,which provides theoretical base for us to practice the policy;what's more,this policy is also beneficial to weaken auditors' collusion preference from the long-term game perspective,and to regress the double auditing system into the single auditing system so that we can save the whole social supervision cost.