Research On The Internal Control In XX Accounting Firm Based On Risk Management

Certified public accountants (CPA) are vividly compared to “economic police that arenot paid by the government”, who are important monitoring strengths during the socialisteconomic construction of our country. From the recovery of nongovernmental audit to now,the periodic characteristics of accounting firms in our country are weak strength, smallemployment size, small crew and weak risk tolerance. Moreover, most accounting firmsare middle and small scale accounting firms. The Some Opinions Relevant to Promotingthe Development of CPA Profession issued by the ministry of finance in2009reflected thetight concern and great support of our country in the development of CPA profession. Atthe same time with welcoming the great development chance, middle and small accountingfirms were faced with many risks. The objective to research the internal controls ofaccounting firms is to improve audit quality and their risk tolerances. Considering theparticularity of the operations of accounting firms, the construction of the internal controlsystem of accounting firms is combined with risk management to carry out internal controleffectively based on risk management, and finally to control the risks faced withaccounting firms within the tolerance scope through the effective implementation ofinternal control.In this paper, theoretical analysis is combined with case studies. First, the differentcharacteristics of accounting firms are discussed. The differences in some links of riskmanagement and internal control of accounting firms from general companies are pointedout and the risk management and internal control of accounting firms are discussed fromthe objective realities of the businesses in accounting firms. Based on the elaboration aboutthe risk management and internal control, the opinion that the internal control ofaccounting firms can be improved from the view of risk management is put forward. Then,field research is carried out to summarize the current internal control conditions of XXAccounting Firm and find out the problems in the internal control of the accounting firm.Finally, detailed and feasible measures are worked out for the improvement of the internalcontrol system of the XX Accounting Firm by aiming at the key factors for the internalcontrol system of accounting firms based on risk management. Meanwhile, the currentsituation of XX Accounting Firm is common in the middle and small accounting firms inour country. Therefore, this paper can provide some references for other similar middle andsmall accounting forms in the improvement of the internal control.