The Research Of Laccounting Firms' Audit Quality Control Based On The Reputation Risk Management

The rapid development of China's audit industry has brought about such problems as low audit quality and damaged audit reputation.If we can establish a reasonable optimization based on audit quality control system of reputation risk management according to the audit quality and audit reputation,then it will be the accounting firm and the audit market to regain professional trust.This paper first reviews the literature review and theoretical basis.Related literature review from three aspects: reputation risk and reputation risk management?audit failure and audit reputation?audit quality control,summarize relevant literature research achievements,the thesis comes to these three aspects of the theory,in order to lay a solid theoretical foundation for the following.Secondly,this paper summarizes the audit failure cases of L accounting firm,analyzes the audit quality control system of L accounting firm.Based on the review of failure cases of L accounting firm,the causes of audit failure are divided into external factors and internal factors,and the causes are from the audit environment,customer behavior,social public opinion,and then to the internal audit and accounting firms' internal governance.With administrative punishment case analyze the defects in audit quality control,through the present situation of audit quality of L accounting firms,it is concluded that the audit quality and audit reputation have interaction,which leads to the necessity of establishing the audit quality control system of accounting firms under the audit reputation risk management.Thirdly,the paper designs the audit quality control system of L accounting firm based on reputation risk management.In the construction of reputation risk management under the accounting firm audit quality control system,according to the risk management process,put “Distinguish-Evaluate-Warning-Reply”into a reputation risk management mechanism.According to the principle of effectiveness,systematization and pertinence,this paper designs the audit quality control system of L accounting firm.Specifically,through the study of this paper,we should focus on five aspects: organizational structure,responsibility assessment,information transfer,personnel training and business processes.At the same time,combining with the causes of audit failure,the paper puts forward five points to ensure the audit quality control system under the audit reputation risk management mechanism to preventaudit failure and maintain the reputation of audit.The last part is the conclusion and prospect.Through the analysis of the causes of audit failure,that each link in the audit whether there are internal or external reputation risk;audit quality and audit reputation at the same time interactions exist,so the establishment of risk management audit reputation under the accounting firm audit quality control system is necessary.Through the discussion of this paper,expected the future research can further expand the breadth and depth of the audit market participants,and jointly maintain the audit quality and industry reputation.