Study On The Influential Factors And Improving Methods Of Audit Efficiency

The Chinese Institute of Certified Public Accountants (CICPA) has encouraged Certified Public Accountants Firm (CPA firm) to grow bigger and stronger in2007.It is to cultivate some competitive CPA firms, to perfect the audit market. The paper researched on the influential factors of audit efficiency and the path to improve audit efficiency. It is conducive to evaluate the efficiency of China’s CPA firm, to find out the way to enhance the competitiveness of CPA firm and the growth of CPA industry.First, the paper used economic theory and management theory to analyze the connotation of audit efficiency, and indicate that the quality of audit is the premise of auditing efficiency. Second, the paper analyzed four influential factors of audit efficiency, including audit procedures, human resources, the size of CPA firm, and information technology. Third, the paper examined the punish announcements of China Securities Regulatory Commission (CSRC) from2001to2011, and considered that the audit plan, the circularization, the supervisor and analytical review may impact audit quality and audit efficiency. Then the paper used data envelopment analysis (DEA) to evaluate the audit efficiency and Tobit model to verify the influential factors of audit efficiency. Last, according to the previous theoretical analysis and empirical results, the paper summarized four ways to improve audit efficiency:audit expert system, knowledge sharing, encouragement, and the merger of CPA firm.From empirical analysis, it indicated that the China’s CPA audit operations on the full use of existing resources, and the scale efficiency (SE) and technical efficiency (TE) of China’s CPA firm is well. And the experience of CPA, highly educated CPA and the size of CPA firm are influential factors of audit efficiency. So, accumulating the experience of CPA, enhancing the academic levels of CPA, and expanding the size of CPA firm, will promote the audit efficiency.