Research On The Application Of Integrated Audit In CPA Firm Of Our Country

In the case of Enron, WorldCom and other financial fraud cases, National government regulators speed up the construction of internal control legislation. In order to improve the audit efficiency and effectiveness, the United States proposed the concept of "integrated audit" for the first time. In2010, China’s Ministry of Finance and other departments published the guidelines of "audit of enterprise internal controls". which put forward the implementation of integrated audit. but it did’t rule how to implement "integrated audit", so it is not conducive to our CPA practice. Based on this realistic problem, this paper analyzes the necessity and feasibility of the integrated audit on the basis of theoretical analysis. Then discussed how to implement the "integrated audit", including the problems of implementation mode, integration points, implementation approach and Implementation process. Combined with the actual case analysis, this paper put forward some suggestions for our accounting firm on the integrated audit.This article has seven chapters, each chapter includes these major elements:Chapter Ⅰ is the introduction. Firstly, it described the background of research. Integrated audit is the trend in our country, the regulations said we can implement the integrated audition in our country, but it did not elaborate on how to implement it. Therefore, this chapter explains the purpose and significance of writing this article. Then introduces the thoughts and framework of this article. Finally introduces the research methods.Chapter Ⅱ is the reviews. This chapter analyzes the research situation of integrated audit mainly from two aspects of foreign and domestic.Chapter Ⅲ is the theoretical analysis. Firstly, it introduces the important concepts related to the integration of audit, as well as the basic characteristics. Secondly, it describes the theoretical basis of the integrated audit from the aspect of principal-agent theory, the cost-benefit theory and the asymmetric information theoryChapter Ⅳ is the analysis of the necessity and feasibility on the implementation of "integrated audit" for our country accounting firms. First of all, this paper analysis the necessity of "integrated audit" from the benefits. Secondly, it analysis the feasibility from aspects of the connection between the two kinds of audit, CPA’s ability, awareness and demand of the auditees, the protection of national policy.Chapter V is the analysis of the implementation of" integrated audit". Firstly, this chapter compares the different characteristics between the United States and the Japan on the implementation model, and analyzes how to choose the implementation model of "integrated audit". Secondly, in combination with the relationship between "audit of financial statement" and "audit of internal control", this chapter concludes some key points on the implementation of integration, discusses the implementation thoughts. Finally, combining the correlation on the audit process of financial statements auditing and internal control auditing, this chapter discusses the audit process of "integrated audit".Chapter VI is the case analysis. This chapter studies the "integrated audits "combining the audit case of XinYongZhongHe accounting firm to xinhua pharmaceutical company. This chapter includes the reasons for selecting the case, the company’s basic situation introduction, the case briefing, case analysis and evaluation, etc.Chapter VII is the suggestions on the implementation of the integrated audit in our country. According to the case analysis of chapter6as well as the first five chapters of theory analysis, this chapter put forward some related suggestions combining the reality of our national policy and public accounting firms.There are two main contributions of this paper:Firstly, this paper take the integrated audit as a whole to study. It analyzes the important items related to integrated audit, which supplements and improves the theoretical framework of of existing theory of integrated audit, and it will promote the development of China’s integrated audit theory.Secondly, on the research of integrated audit, the article that combined theory with the actual reality is less. This paper analysis the integrated audit combining the case with the reality, and provide some advices for the accounting firms in our country, so this paper has a certain reference significance.