Research On The Application Of CPA Firm's Auditing Quality Control

The CPA firm is to set up according to law and undertakes certified public accountant business. In marketplace economic system, the certified public accountants carry out history financial information auditing and review, and other assurance service. The purpose of CPA firms is to maintain the social economy, and protect investor and the interested parties'rights.Public people pay much more attention on CPA firms. Therefore, the CPA firms must offer high quality service.This article has three parts. In part one, the author explained the definition of quality and audit quality, then the author explained from the thoeries of auditing creation that the quality control is the base for CPA firms to live. The CPA firms must implement the complete quality control. The complete quality control means the complete control with objects, process, all employees, and all management methods to improve the effectiveness of work.In Part II, the author mainly discussioned factors influencing quality control in CPA firms, and pointed out the components of quality control: (1) leadership; (2)ethics;(3)acceptance and retention of engagement;(4)human resources;(5)engagement;(6)working paper;(7)monitoring.In part III, the author analyzed the case of quality control in CPA firms.The author discussed the framework of acounting firm quality control and how to applies the total quality control to the CPA firms. From the analysis, the author reached the following conclusion:(1) The audit report is extraordinary key information resources to accounting information user. The reliability and accuracy of audit opinion depend on auditing quality. Auditing quality plays very important role to the financial statement user..(2) The factors influencing the quality control include auditor's independence, compentence, concentration of audit market, ethics and etc. They are all the objects of quality control. (3) When setting up the rules of qualtiy control, the CPA firms have to obey the CPA Firms Quality Control Standards No5101. The components of quality control include (1) leader responsibility; (2)ethics;(3)acceptance and retention of engagement;(4)human resources;(5)engagement;(6)working paper;(7)monitoring. The leader responsibility to business is premise condition among them; The ethics is foundation stone of the control.(4) Every CPA firms setting up the quality control, they must consider the self situations, such size, structure, employee, the main services, and competitive strategy. The CPA firms should make the quality control system suitable to office reality.(5) The author analyzed the audit services offered by medium and samll CPA firms, and explored the practice of complete quality control. Small and medium firms are constrainted by inside resources and pressed by outside market competition. The CPA firms should set up three-level examination quality control.