The Framework Research On Independent Audit Quality Analysis Based On Reliability

Recent high-profile business and audit failures created an unprecedented prestige crisis in the accounting profession. The problem of independent audit quality becomes the focus. Independent audit quality, namely the good and bad degree of the independent audit work, includes the quality of the independent audit work course and the quality of audit report or suggestion fruiting as the independent audit work.Independent audit information is the carrier of independent audit activities. Its quality characteristic includes, at least, independence, objectivity and reliability. Among them, reliability is the key characteristic of high quality independent audit information. The independence and objectivity are the basic characteristics, two major essential quality guarantee to the audit reliability. The criterion of independent audit quality, refers to the judging standards, with which, all interests group related to independent audit activities from its own interests perspectives look at the quality of independent audit. From entity rational angle, audit quality should be judged by the validity of audit goals in the activity of independent audit. From procedure rational angle, audit quality can be judged by whether audit work follows rational procedures. Rational procedures in independent audit activities, mainly includes the independent audit professional standards and the rules of independence. Clear corresponding relation exists to the audit quality criterionframework and the quality characteristic system of independent auditing information.The traditional independence framework of audit quality analysis has, at least, two great limitations that cannot be overcome. First, the certified accountants cannot keep the absolute independence. Second, independence is not enough to guarantee to audit quality. The article structures a quality analysis framework of independent audit taking reliability as the core. In this framework, reliability is considered as the cornerstone of independent audit. Here, audit reliability, usually means this situation: Investors find the certified accountants' audit work and suggestion can rely on and depend on at any time. Audit reliability includes two aspects, namely reliability in appearance and reliability in fact. Independence, based on client relationships management, guarantee to the reliability in appearance. Expertise and integrity, through acting on the objectivity of audit activity course, ensure the audit work and suggestion are reliable in fact.Under the framework of reliability, independence, refer to the situation that the certified accountants and their clients have no any relationship that may be deemed to diminish its reliability, namely client relationships based independence. This definition is equivalent to the formal independence in the traditional meaning. It is client relationships management that the accounting firm uses to keep audit independence, avoid or reduce independence risk. The independence risk framework of ISB, based on public interests, studied systematically the problem of independence risk and its management. The rules of independence provide with concrete behavioral norm in order to control the independence risk and guarantee to the audit reliability in appearance. Objectivity means that the certified accountants' audit work and suggestion have reflected accurately whether to express and have no significant misrepresentation in the accounting reports. The objectivity can guarantee to the audit reliability in fact through the effect of expertise and integrity. Independent audit profession standards have offered realistic basis to judge theobjectivity in the course of independent audit.Under the reliability framework of independent audit quality analysis, each responsibility subject bear their corresponding audit responsibility in the situation of audit failure. The certified accountants should bear their responsibility because of not following the demand of independent audit standards and professional ethics. The accounting firm should bear responsibility for the situations of not following the rules of independence and the quality control standards. The audit professional organization should bear responsibility for the lag and defect of profession standards and rules of independence.