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Independent Audit Quality Assurance Theory

Posted on:2004-05-05Degree:DoctorType:Dissertation
Country:ChinaCandidate:K SunFull Text:PDF
GTID:1116360122475797Subject:Accounting
Abstract/Summary:PDF Full Text Request
CPA audit has come up to the world in response to the demand of economic development. When one group of people were entrusted with the property of another the necessity of attestation upon the fidelity of the former became apparent. The more developed the market economy is the more important the role of auditors becomes. As a key element of the social structure, the public accounting profession must make great effort to strengthen her standing in meeting the increased demands of the public. In doing so keen attention should be paid to the quality of audits conducted by CPAs. Maintenance of audit quality is crucial to CPA firms and auditors because the primary services that they have'to sell are their integrity, objectivity and professional judgment. As for China, entering WTO means more intensified competition among domestic and external practitioners. It calls for greater effort to consider the issue of ensuring and promoting the quality of audit performance to maintain the reputation of the profession. This paper focuses on the issues relating to the maintenance and promotion of audit quality. It intends to establish a quality assurance framework based on the analysis of factors that influence the performance of audits. The framework is composed of four subjects who are responsible for the overall audit quality matters, including the government, the professional organizations, CPA firms, and the individual Certified Public Accountants.This paper consists of one introduction and seven chapters.The introduction outlines the motivation of writing this paper and the structuring arrangement of the paper. The reason I chose the audit quality control area as my paper topic is that I think this is an issue of theoretic value and practical interest to both the profession and the public. Firstly, the issue of quality itself is an everlasting topic that is always worth discussion. And secondly the scandals of Enron and Worldcom and some domestic cases in which CPAs were involved haveattracted the world's eyes and the reliability and credibility of the profession has been suffering serious criticism.The organization of the paper is based on the following thread of thought: the audit function must be in existence to make the economy grow smoothly and the realization of audit function and the quality of audit performance is closely related to each other because audit function can only play its role properly when the quality of audit services is to the public's satisfaction. So the social and economic demand of auditing is firstly demonstrated to prove the importance of audit quality. And then the internal and external factors that impose influence over the quality of audit are analyzed, and the organizations and individuals who are responsible for managing or controlling these elements are specified. Lastly the audit quality assurance framework is established and each component of the framework is discussed.Chapter 1, "Audit Quality Ensures the Realization of Audit Function,"addresses the relationship of audit quality and the fulfillment of audit function. It begins with the discussion of the importance of audit function in the social and economic structure. This idea is confirmed by speculating the relationship of the evolvement of auditing and such essential key economic events as the emerging of partnerships, corporations, capital market and economical crisis, which occurred in the historical development of the market economy. China is now completing the transition process from planed economy to market economy and the audit function is as well of great importance to the successful development of the country. Auditing makes contribution to the expansion of economy by providing quality information to decision makers. Logically, such issues as the concept of audit quality, the quality characteristics of audit information, the standards used to evaluate the quality of audit, are discussed. The assessment of the overall audit performance quality in the domestic accounting market is also provided.Chapte...
Keywords/Search Tags:Independent
PDF Full Text Request
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