Research On The Audit Work Of Accounting Firms On Third Parties

The development of the market economy has increased competition among enterprises.In order to survive and sustain development in the fierce market competition,more and more enterprises have achieved the goal of inflating assets,concealing liabilities and creating a good corporate image through fictitious transactions.Due to the non-standardization of the audit work for the third party by the CPA,no cases of improper audit opinion report emerged.The audit failure caused by the CPA and the accounting firm caused double reputation and economic losses.Audit work for third parties plays a vital role in auditing financial statements.How to standardize audit work for third parties and implement adequate and appropriate audit procedures are especially important to improve audit quality and prevent audit failure.This paper first sorts out the scope of audit work for third parties,and clarifies which report items in the report audit will involve audit work for third parties.Secondly,in order to analyze the problems existing in the audit work for third parties of accounting firms,this paper selects the audit failure cases related to the audit work for third parties in the CSRC penalties announcement from 2001 to 2018,and summarizes the existing audit work for third parties through descriptive statistics.In the case,it was found that the audit failure due to the non-standard audit work of the third parties showed a gradual growth trend,and the large-scale accounting firms and domestic-funded firms were more likely to have irregular behaviors.The continuous audit of a single entity,IPO Auditing is also prone to audit work issues for third parties.Thirdly,it summarizes the problems existing in the auditing process,analyzes the root causes of the non-standard auditing work for third parties,and proposes corresponding optimization measures from three aspects: industry supervision,accounting firms and CPAs.Through the research of this paper,the following conclusions are mainly obtained: the emphasis on third-party audit work should be strengthened;the guiding role of auditing standards should be strengthened;the quality-oriented evaluation mechanism should be established to strengthen the accounting affairs;CPA firmsstrengthen their own system construction and create a good practice environment for CPAs;CPAs maintain good professional ethics and standardize the implementation of third-party audit work.