Independent Auditor's Professional Competence

Independent audit is the important external mechanism to supervise the quality of accounting information. The CPAs' reports are used by the majority of investors for investment decisions. So the auditing quality has a direct impact on the function of the independent audit.We know that the professional competence and professional ethics are two major factors that affect the level of auditing quality. If we don't have enough professional competence, we can't improve the auditing quality. And if we don't have professional ethics, though you have enough professional competence, the auditing quality might be reduced without detectable. Our current research focuses on professional ethics, the research of professional competence is very rare. This is consistent with the earlier stage of the auditing market. But in an open market environment of auditing, professional competence has become the shackle for the auditing profession to further development. Therefore, to reduce auditing risk and improve auditing quality, it is necessary to have an in-depth analysis of the professional competence. This thesis is divided into seven parts:The introduction gives the reason of choosing this subject. Through the review of relevant document survey, then the reader may have a preliminary understanding of the professional competence. After that I present the writing ideas of the thesis.The first part introduces the significance of independent auditor's professional competence from theory and practice. From the auditing quality and the relationship between the relevant auditing concepts and the professional competence, we can see the importance status of the professional competence in the auditing theory; From the introduction of the auditing environment, the competition of the accounting firm, and the development of the industry, it also shows that the professional competence has a great practical significance. The second part introduces the meaning of professional competence first, then has a detailed analysis of the elements of professional competence with the competence-based approach. Professional character, professional knowledge and professional skills are the organic composition of the professional competence.The third part has a depth-analysis of the influencing factors of the professional competence for an independent auditor, including internal and external factors. External factors are mainly from the macro-level, the changes of the environment will affect the auditing profession, thereby indirectly affect individuals of independent auditors. Science and technology, economic factors and legal factors are the main factors; internal factors are mainly from the micro-level, including inborn factors and acquired factors. The main factors of the acquired are the education and practical experience and environment where the individual stays.The fourth part discusses how to obtain and maintain professional competence for an independent auditor. Education and practice are considered the two main ways to obtain professional competence. The maintenance and enhancement of professional competence is to be achieved through continuing professional education.The fifth part analyses the current situation and the problems of the independent auditors in china, such as irrational age structure, narrow knowledge, inadequate skills, lack of experience, and lack of continuing professional education and so on.The sixth part expresses the measures and proposals of improving the professional competence. This thesis describe mainly from the former qualification education, the CPA examination and continuing professional education.