Research On The Relationship Between Audit Contract Stability And Audit Qu Ality

Since the birth of the CPA audit system,its quality has been the focus of people's attention,but only to a different degree in different periods.Investors,creditors,and governments all need to refer to financial information audited by CPAs to make decisions,so the market 's demand for CPA audits is increasing.However,due to various factors,CPA audits cannot fully guarantee the quality of accounting information,and audit failures occur from time to time.In recent years,a series of scandals of financial fraud by listed companies have occurred at home and abroad.The public has questioned the audit quality of certified public accountants to a certain extent.The failure of audits has caused a certain degree of damage to the credibility of independent auditing.The reputation has been affected,triggering a crisis of trust in the CPA industry.One question that people raise when reflecting on and analyzing the reasons for audit failure is the relationship between the stability of audit engagements and audit quality.It is because the accounting firm's term is too long,and the stability of the audit engagement is too strong,resulting in low audit quality.To this end,a series of measures to improve the quality of audits at home and abroad,one of which is the mandatory rotation system.In recent years,management authorities,academia,and practical circles have attached great importance to this issue,and China's regulatory agencies also requested the implementation of an audit rotation system in 2004.Research is first of all the research background and significance,literature review,research goals,research content,and key issues to be solved.The second chapter is related to the theoretical foundation and definition of concepts,which clarifies why auditing is needed,and elaborates the connotation of audit quality and evaluation of audit quality.It also explains that the study uses the length of the accounting firm's tenure to measure the strength of the audit engagement stability.The third chapter describes the current status of audit quality in China,and analyzes the reasons for the low quality of audit in China.The fourth chapter introduces the case of Ruihua Certified Public Accountants' failure in auditing Kangdexin,analyzes the main reasons for the failure of the audit,and studies the relationship between the stability of audit engagement and audit quality through a case analysis method.Chapter V concludes that the accounting firm's term is too long,and the stability of the audit contract is too strong to improve the quality of the audit.It also puts forward practical suggestions,at the same time,puts forward the shortcomings of research and the future research Looking forward.The research results of this paper have certain reference significance for establishing an audit rotation system suitable for China,for the healthy development of the certified public accountant industry,and for improving the audit quality.