The Primary Audit Institutions Audit Quality Control

Audit quality is vital to auditing. The goal of the audit bureau is to improve the audit quality, maintain the authority of their work, and keep pace with the progress of the society. Thus, it is important to fully understand the quality of audit, strengthen the control of the audit quality and regulate the audit behavior. To achieve this goal, the Chinese National Audit Office (CNAO) promulgated "Measure of Audit Institutions for Quality Control of Audit Project (Trial Implementation)". This thesis studies on how to improve the audit quality of grass-root audit bureau based on the "trial implementation" and the real situation that faced by the grass-root audit office.Firstly, this thesis gives the definition of the national audit quality, the audit quality control and the audit quality evaluation metrics, and the specials of the management system and the organization of China's audit bureau are also introduced. It then analyzes the factors from the angle of society environment and controllable elements which affects the audit quality of audit office, and then uncovers the problems that the grass-root audit offices face. Secondly, after analyzed the audit report popularization, the audit quality control system and the audit results of two audit offices that are governed by a same superior body, the thesis proposed that the grass-root audit office should not only popularize their audit result actively in a controllable region, but also establish a complete quality control system. Finally, after learning the experience of employee capability control, project management and audit report popularization from the audit bureau of Germen and Canada who adopts different management system, and based on the China's reality, this thesis proposed three suggestions to improve the audit quality: 1. Transform the current management system from indirect leading system to direct leading system. 2. Strengthen the external supervision, which includes peer review and audit results public announcement. 3. Setup a complete audit quality control system. The innovation of this thesis is to setup the measurement indexes on project quality control and employee capability management, together with relative rules and supervision, thus guarantees the rules to be executed. Hope this thesis can provide the practice directive significance in improving the audit quality of the gross-root audit offices.