The Research On Accountant Firm Audit Quality Control In China

Audit quality is the lifeline of CPA industry. The accounting fraud incident occurred frequently, such as the GREEN-LAND, the ZIXIN PHARMACEUTICAL, the SHENGJINGSHANHE, the XINDADI, the WANFUSHENGKE and so on, causing immeasurable losses to the market. Especially in ordinary social public opinion, CPA has evolved by the sacred "economic police" for financial fraud. It poses a direct threat to the survival and development of CPA industry. Therefore, how to effectively conduct audit quality control, is already the market parties mutual concern. In view of this, the author tries to under the new situation on the basis of predecessors’research discuss the audit quality control problem, in order to provide theoretical reference for the improvement of audit quality.The thesis deals with audit control according to the order:the theory of bedding-status quo of the study-problem description-countermeasures and suggestions. The thesis consists of4chapters. The following is the structural arrangement of the thesis.Chapter1mainly summarizes the basic issue of CPA’s audit quality control. First respectively expounds the meaning and characteristics of audit quality and audit quality control. For audit quality, This paper cites a classic meaning of DeAngelo:audit is the joint probability of finding and reporting the irregularities in the accounting system, which is not directly measurable, systematic, efficiency and uncertain. For audit quality control, from the viewpoint of system theory, this paper points out that the CPA audit quality control is composed of multiple interconnected subsystems, the goal is to ensure the high quality audit, is a kind of all elements, whole process and multi-level control. Trust-agent theory, information theory and control theory are the basis theory.Chapter2introduces the the current situation of audit quality and its control, accounting information inspection of the ministry of finance, professional quality inspection of CICPA and the listed company auditing opinions are three aspects of audit quality. Then sum up the present audit quality control framework from the external industry regulation and firm internal quality control. It can be seen the current audit quality control is too be broad.Chapter3summarizes the current problems existing in the audit quality control. This paper summarizes the four aspects of problems:external supervision level, audit market level, accounting firm level and the corporate governance level. Specifically, the external supervision level contains regulatory fragmentation, low legal risks and the absence of public supervision; audit market level contains low market demand, the employment pattern distortion and irrational market structure; accounting firm level contains bad organization form and the bad internal quality control; corporate governance level contains high ownership concentration and bad board governance level.Chapter4puts forward the the countermeasures:improving the external regulatory environment, optimizing audit market, improving the firm’s internal environment, perfecting the corporate governance structure. Specifically, improving the external regulatory environment contains clear regulatory duties, to intensify punishment and encourage social public supervision; optimizing audit market contains improving the audit effective spontaneous demand, changing employment patterns and developing oligopolistic structure type of audit market; improving the firm’s internal environment contains reforming firm organization, strengthening the firm’s business quality control and building public interests as the core of the management culture; perfecting the corporate governance structure contains optimizing ownership structure and perfecting the governance mechanism of board.The rapid development of social economy and the great changes in the environment are the reason for the increase of audit quality impact factors, causing the complexity of audit quality control system. Research on audit quality control from the point of view of system itself involves many factors, in this paper, some factors not taken into account. Believe that with the deepening of the theory and practice research, audit quality control will continue to improve and the audit quality will improve steadily.