On Internal Control Optimization Of LLP Accounting Firms

In recent years,with the rapid development of the global economy,the economic ties between the countries of the world have become increasingly close.The phenomenon of financial fraud and management fraud has become more and more,and the impact is farreaching.In addition,with the rapid development of Internet +,big data technology and AI,the technology of financial fraud and management fraud is constantly updating.All of the above have put forward higher requirements for accounting firms as the first “barrier” to prevent the fraud.And to make the comprehensive ability of accounting firms match the increasingly severe economic environment,optimizing its internal control system for longterm and steady development is very helpful.In 2010,China promoted the fixed restructure of accounting firms.After research,the mainstream viewpoint of the limited liability partnership accounting firms(LLP)is that the reformed accounting firms have a larger overall ability improvement in auditing quality.Therefore,the author chooses the LLP accounting firms as the research object,and uses the information provided by the internal staff of the case firm.From the perspective of five elements of internal control,the author analyzes the case firm's organizational structure and internal system in detail.Then the author discusses the effective countermeasures for optimizing the internal control system of LLP accounting firms,in order to propose a development model applicable to the whole industry,and provide references for the longterm and stable development of the accounting firm industry.The paper takes case study as the research method,and selects the Z accounting firm(LLP)to carry out the optimization research on the internal control.Firstly,it analyzes the development background and industry characteristics of China's LLP accounting firms.Secondly,from the perspective of the operation mode of Z accounting firm(LLP),it can be concluded that the areas where internal control needs to be optimized are mainly reflectedin three aspects: internal management,employee independence and project quality.In terms of internal management,such as ignoring the role of the regulatory authorities,the quality control system is not perfect,and the idea of comprehensive risk management is not well implemented.The quality control department has multiple roles and responsibilities,which results in too heavy burden,and some projects quality control review is just ostensible.In terms of independence,such as the risk awareness of employees in the firm is not high,and the sense of confidentiality is lacking.Apart from that,there might be some behaviors in which the CPA has illegally bought and sold stocks.In terms of project practice quality,such as the firm does not implement the comprehensive risk management awareness,the riskoriented audit concept is not clear enough,and the risk assessment and subsequent substantive procedures do not match perfectly;the key audit procedures are not carried out scrupulously,and the important substantive audit procedures are missing.The working papers are incomplete and the audit evidence is insufficient.In addition,many of LLP accounting firms have paid insufficient attention to the application of high-tech in auditing,which has limited the development of auditing efficiency,and has also lowered the speed of auditing quality's progress.Under this circumstance,the paper also emphasizes that accounting firms should pay more attention to the innovation of auditing technology.Through the study of the case,the paper draws the necessity and feasibility of the optimization of China's LLP accounting firms for its internal control system.Therefore,several suggestions for optimization can be put forward: Firstly,pay more attention to the role of the regulatory department,and further improve the internal control of the firm from the perspective of organizational structure,so the risk of the internal control can be fundamentally reduced.Secondly,pay attention to the technical department.On the one hand,the use of technical departments to enhance the convenience of audit work is very helpful;on the other hand,we can also use the technical department to strengthen the security and confidentiality of the practice process.More importantly,to vigorously develop technology,and strive for the fraud,while the fraud technology updating endlessly,and auditing techniques and methods can also be developed rapidly to compensate for the blind spots in the practice process.Thirdly,we must establish a high-quality and unique corporate culture.A high-quality corporate culture can invisibly enhance the social responsibility of employees in the firm,which will make the employees understand the meaning of their work deeply.Their duty are more to protect the legitimate rights and interests of investors,not just tocomplete the task,thus it can also reduce the risk of professionalism and independence to a certain extent.The unique corporate culture can assist the rapid development of the firm,too,and find a unique way to keep the accounting firms developing fast and steadily.