Study On The Action Mechanism Of CPA's Firm Quality Review On Audit Quality

Along with the change of the concept of audit quality,"certified public accountants audit mechanism of audit quality" study of the importance of improving.On the one hand,in the field of practice,independent review superficial phenomenon is relatively common.More important,the capital market attaches great importance to the usefulness of information assurance,will push accounting firm review(hereinafter referred to as the independent review)change the idea of compliance checks.In recent three years,severe degree of capital market regulators to punish the auditor and unprecedented.A number of well-known domestic and overseas accounting firm for non-performance industry due diligence responsibility judgment's appeal was rejected,and ultimately take several times the audit cost huge fines.At present,the capital market of information useful to guarantee the demand of the auditing standards and the accounting standards of major reform.To provide useful information for users of the report,for the purpose of new audit standard requires that all public company audit report disclosure key audit matters.The international accounting standards board(IASB)issued in March 2018,the new concept of financial reporting framework,the accounting standards will have an overhaul since 1989.On the other hand,in the academic field,an accounting firm review is an important content of auditing research,but affected by data availability,literature in recent 10 years failed to have a new breakthrough.Although the research on the phenomenon of reviewing existing literature nuanced,but the lack of theoretical analysis framework,in-depth analysis of the causes lead to research.At present,the "accounting firm review mechanism of audit quality" is a black box.Solve this problem,not only can provide certain guidance for the idea of independent review update,you can build a theoretical framework for the independent review,provide relevant empirical evidence,so as to enrich the audit theory.This article will certified public accountants to review as a resource allocation mechanism,it can make the accounting firm to provide capital market expectations of high quality audit services.Around the main line,this research accounting firm review be placed more micro firm level than the institutional environment.In the perspective of resource allocation,accounting firm review become firm handling the relationship between internal and external stakeholders governance tools.In the perspective of regulation,it is often the firm for internal employee monitoring tools.This paper adopts the normative analysis and empirical analysis of the two methods,respectively,in the aspect of nature and the influence level,analyze the mechanism of the accounting firm review on audit quality.(1)in the study section of the nature level,the use of conceptual tools-information content loss,explain the meaning of the independent review and the high quality accounting information.Through review and project quality control can be divided into certified public accountants audit two basic activities,reveal the independent review can solve the problem of the uncertainty of project audit,as a supplement to the audit of the project being inevitability.Then,this article introduce the real meaning of the accounting firm review,from the view of the uncertainty of expected increase quality,points out that the audit contract purchase and users of the report is firm,audit report three parties of the contract,and saving the transaction cost of the contract is the key to reduce the quality of the three parties expected gap.Finally,points out that the public accounting firm to review for the coordination of audit judgment,is the result of the audit judgment of procedural rationality and rationality in balanced ability,is good for the consensus of audit judgment and stability is established.(2)in the study section of the behavior and the influence level,from to reduce the loss of information content,according to the reasons of the loss,built by the compliance review review and regularity,cognitive deviation review the review of the three categories of resources allocation structure.Then,by analyzing the three groups of review for the coordination of audit judgment,interpretation of certified public accountants to review the mechanism of audit quality.Finally,the paper puts forward three research hypotheses,empirical analysis,based on this,further reveal the coordination of three groups of review on audit judgment,to promote the relationship between accounting firm review and audit quality.After more than two levels of detailed analysis,the following research conclusions in this paper are:Firstly,an accounting firm review can increase the quality of the expected certainty.Public accounting firm review consists of compliance review,cognitive biases check and review the common regularity of a resource allocation structure.Review the three groups,respectively,according to rules to execution of self-interest and cognitive deviation,as well as the knowledge of the rules the designer finiteness,can,in turn,increase the degree of detailed audit evidence,evidence of professional degree and the effectiveness of the collective decision-making,help firms to provide capital market expectations of high quality audit services.Secondly,an accounting firm review for the coordination of audit judgment,can promote the correlation of certified public accountants to review and audit quality.In the process of review,review subject and project audit teams,regulators sent inspection teams will enter the game,and interactive state.The communication is good for the consensus of audit judgment and stability is established.In particular,to review and regularity to review compliance review,cognitive deviation,in turn,to experience judgment,the concept of logic and reasoning model logic with coordination.Thirdly,the management information system upgrades to improve audit quality.In the information age,the review of the audit quality of regularity dependent,with the increase of uncertainty and deepen.The advantages of management information system can be within the scope of the accounting firm to build effective information sharing and information communication platform,thus promoting the correlation rules to review and audit quality.Innovation points of this article are as follows:Firstly,the research perspective is relatively new.Choose from the perspective of certified public accountants resource allocation,this paper analyses the independent review,rather than from the perspective of the conventional system standard.In the perspective of resource allocation,an accounting firm quality control activities of the allocation of resources can be divided into project audit and independent review.Project audit activity attribute is the production of its resource configuration aims to increase return to scale,it exists in the information content loss processing large uncertainty.Therefore,the distribution of certified public accountants independent audit resources,its quality uncertainty is to increase firm's necessary rational choice.In view of the information content resulted in a loss of three kinds of problems,namely,rule execution self-interest and cognitive deviation,and problem of limited configuration in order to review and regularity to review compliance review,cognitive deviation,structure of independent review resources.Secondly,the interpretation of the meaning of independent review.Independent review the root cause is:to improve the quality of audit deterministic check it is to increase the quality expected.Independent review this meaning,reflected the capital market in saving the transaction cost of information on the value orientation,indicates that it is not a simple compliance checks,means it on-site audit to the audit quality has the team the effect that cannot replace,can even think independent review and have the same important role in the on-site audit.Specifically,compliance review means increasing degree of detailed audit evidence,it can improve the audit quality.Cognitive biases review means increasing evidence to choose professional degrees,so can improve the audit quality.Regularity review means increasing the uncertainty of the collective decision effectively,so can improve the quality of audit.Thirdly,found the independent review coordination effects of audit judgment.Independent review of the audit conclusion evaluation based on an objective and fair audit judgment.With project audit teams,regulators in the process of the game,interactive,independent review by balance audit judgment of procedural rationality and rationality as a result,build the consensus of audit judgment,to improve the audit judgment.Independent review for the coordination of audit judgment,embodied in compliance review of experience judgment,the coordination and cognitive deviation review of conceptual logic judgment,the coordination and regularity review coordination of type inference logic judgment.The empirical results of the further analysis shows that the independent review of the coordination of audit judgment,can promote the correlation of independent review and audit quality.Fourthly,found the management information system upgrades to improve audit quality.Management information system in this article,we will upgrade to review and audit quality inputs as regularity between adjustment variables proxy,regularity review refers to the lack of rules to guide the uncertainty reasoning model logic judgment,the process of regulating variable refers to the specific regularity review coordination of type inference logic judgment The empirical analysis shows that the management information system to review and audit quality upgrade investment can promote the regularity of correlation.These findings suggest that the management information system upgrade is not simply realize the modernization of the firm's internal office,but the value investment to improve the quality of audit.The significance of the value investment is by increasing the accuracy of type inference logic,guarantee the information useful.In current practice,the accounting firm adopts the model of collective decision increases the accuracy of type inference logic judgment,the management information system upgrade to ensure the effectiveness of the collective decision model.