Research On Evaluation System Of Audit Quality Based On Jiangsu ZH Accounting Firm

With the development of market economy, audit is playing a more and moreimportant role in the national economy, and the social public is getting a higherdemand for audit. In recent years, however, the phenomenon of audit failure tells usthat we cannot ignore the concern on audit quality during the fast development of theaudit industry. Therefore, evaluation of audit quality is being taken more and moreseriously by the supervisors and audit information users.It is always the focus and a difficult problem that how to evaluate the auditquality in the audit theory and practice fields, and it has failed to form a scientific,objective and effective evaluation method yet that is wildly recognized. Theevaluation report of top100domestic accounting firms issued by CICPA annually stillfocuses simply on the business income and the size of the firm itself, it is notcomprehensive and lack of convincing. In fact, the audit information users oftencannot understand the real audit quality and are unable to evaluate the audit quality ofan accounting firm. This kind of situation is quite bad for the development of auditmarket in China. Therefore, to establish a scientific and reasonable evaluation systemof audit quality is particularly important for both audit information users andsupervisors.According to the analysis of factors which have influence on the audit quality ofaccounting firms, this paper has established an index system to evaluate the auditquality which was used in specific cases.The first part is the introduction of the paper. It mainly describes the researchbackground and significance of this paper and the related literature at home andabroad are summarized and evaluated. Besides, it also states the research methodsalong with the main innovation and inadequate.The second part expounds related theories of the definition and characteristicsof audit quality. It discusses the internal factors and external factors affecting auditquality and puts forward the basic ideas of evaluation of firm’s audit quality.The third part constructs the evaluation index system of accounting firm’s audit quality; then it ascertains the evaluation standard of the system, introducing theanalytic hierarchy process (ahp) and software yaahp to determine the weight of eachindex in the system.The forth part applies the system built in this paper in Jiangsu ZH AccountingFirm. Through the investigation of Jiangsu ZH Accounting Firm, we used the systemto quantify the audit quality evaluation and obtained the evaluation scores so that wecould analyze problems and shortcomings existing in this firm.The fifth part puts forward some countermeasures from several aspects to perfectthe audit quality control in accounting firms.