Research On The Audit Quality Control Of LAD Accounting Firm

With the stable promotion of the policy "Mass Entrepreneurship&Innovation" in recent years,small and medium enterprises have entered the fast development stage and a batch of accounting firms that target at these enterprises have gained rapid development as well.As a result of their flourishing development,a series of problems have emerged with these enterprises and accounting firms at the same time.On one hand,small and medium enterprises are generally characterized by the unsound internal control system and incomplete&non-standard financial records,and are thus provided with the higher possibility of significant frauds with the financial disclosure,which results in more difficulty in securing the audit quality;on the other hand,when conducting audits on the small&medium enterprises,the accounting firms are always found with the phenomena of necessary audit&review procedures absence,professional competence inadequacy,and so on,which makes it difficult to control and promote the audit quality.Therefore,it is of important theoretical and practical significance to study deeply how to improve the accounting firms’audit quality control of small&medium enterprises’ projects.In this paper,based on the process quality theory and the process reengineering theory and combining the normative research&the case study,concepts and literature related to the audit quality control have been analyzed first and the representative LAD Accounting Firm has been selected as the study case.The current status of LAD’s audit quality control has been analyzed and the problems with it have been explored.Then,the problem-incurring factors and the control process have been analyzed and improving suggestions have been proposed from the perspective of specific measures and process reengineering.Upon the research,the following conclusions have been made:first,the implementation quality of the field auditors is the foundation of audit quality;second,the human quality is the key factor of audit quality control;third,the management personnel’s toning affects the overall audit quality control level;fourth,audit quality control goes through the whole process of an audit program,so the accounting firm should have the definite audit quality control process.This paper consists of six parts:Part Ⅰ is the introduction,where the research background and significance are described,the domestic and foreign literature is analyzed and summarized,and the research methods and thoughts as well as innovations are pointed out.Part Ⅱ is about the related concepts and theoretical foundation.In this part,the definitions and basic content of the process control theory and the process reengineering are described to lay the theoretical foundation for the research.In Part Ⅲ,the basic information of LAD Accounting Firm is introduced,the current status of its audit quality control is analyzed,and a series of problems are summarized.In Part Ⅳ,reasons for the problems with the firms are analyzed in a targeted way from the perspective of affecting factors and control process.In Chapter Ⅴ,specific improving measures and process reengineering are proposed based on the reason analysis.Part Ⅵ is the summary of the above research and the vision.