Discussion About The Accounting Firm Audit Quality Control

Audit quality is the lifeline of the profession, which relates the rise and fall of the audit enterprise. With domestic and international environment becoming complex, increasing audit failure cases, and rising public cognition and requirement to the quality of CPAs' audit work, Ministry of Finance and Chinese Institute of Certified Public Accountants (CICPA) have issued the Accounting (2006) NO.4 "Chinese Certified Public Accountants Assurance Standards", which contains 48 items. At the same time, CICPA has carried on the revision to the original quality control criterion, and has issued "Accounting Firm Quality Control Standards NO.5101-Service Quality Control" and "Chinese Certified Public Accountants Auditing Standards NO.1121-Quality Control for Historical Financial Auditing Information". Accounting firms must strictly observe the standards to guarantee the quality for their audit work. This paper plans to describe the understanding of the new standards in aspects of the content of audit quality control standards, the changes between the new and the old standards, and the convergence between the domestic and the international standards. Through analyzing the auditing practices and the typical cases, in which accounting firms failed to control the quality for their audit work, this paper will parse the present situation and the origin of domestic auditing. At last, according to auditing practices, this paper will provide advice to accounting firms about how to perfect quality control of audit work.