Research On Audit Quality Control Of DH Accounting Firm

With the rapid development of the accounting firm industry in recent years,the cases of China’s accounting firms punished by the China securities regulatory commission and other institutions have emerged one after another.At the same time that the audit quality problem is concerned,the control ability of the accounting firm to the audit work has been questioned seriously as never before.It is undeniable that with the frequent occurrence of such punishment events,the major regulatory agencies,relevant investors,the public and so on have gradually lost their trust in accounting firms of the past.At present,DH accounting firm is representative of the whole team of domestic accounting firms,in recent years,the business level has been constantly rising,with the injection of industry vitality,at the same time,the scale of the DH accounting firm is also growing,but the way forward is not unobstructed.While expanding its scale,it neglected to pay attention to audit quality control.Because of this,DH accounting firm was punished by China securities regulatory commission one after another,which not only negatively affected the brand reputation,but also lost the public trust.Under such circumstances,DH accounting firm should actively make changes,identify its own shortcomings,and explore its improvement direction and specific strategies in quality control according to previous work.In order to get rid of the current difficult situation as soon as possible,this has become urgent.Only in this way,DH accounting firm can strengthen the level of audit quality control,improve the competitiveness in the industry,and regain the trust of the public while maintaining its own brand reputation.DH accounting firm was penalized by the China securities regulatory commission for the audit of JD,indicating that the audit effect of JD was not good and the audit quality control was not in place.Therefore,this paper takes this as a starting point to carry out follow-up argumentation,and makes a detailed analysis and discussion on the situation that the audit quality control is not in place,aiming to achieve from local to comprehensive through the analysis of individual cases.Through the analysis of the individual audit cases of DH accounting firm,we can infer the problems at the whole level,and hope to extend them to the whole industry based on the practice.It is important to note that control is a comprehensive process,so from the overall perspective,it also includes external interventions such as institutional regulation and industry environment,etc.This article only studies audit quality control from the perspective of accounting firms themselves,analyses its own problems and propose feasible countermeasures,namely narrow sense of audit quality control.Firstly,this paper briefly expounds the research background and significance,combined with the core point of the full text,namely,audit quality control,the research results in the existing literature are summarized.It mainly summarizes the literature from three aspects,so as to provide references for the full text writing.Then,the basic theoretical framework of this paper is constructed,including connotation and criterion.The factors affecting the audit quality control are listed one by one based on the viewpoints of the existing research results and my own understanding,and the methods of audit quality control are put forward,which are expounded by combining a variety of theories,including process quality control theory,total quality management theory,principal-agent theory and system control theory.Secondly,according to the general idea of first finding the problem,then analyzing the cause,and finally solving the problem,this paper deeply integrates the basic theoretical knowledge and practical operation details for a comprehensive analysis.Taking the audit of JD by DH accounting firm as an example,this paper introduces the background information of the case,audit process,quality control requirements and implementation,the consequence.The audit quality control process is divided into four stages according to the business process sequence,and the audit quality control requirements and specific implementation of each stage are deeply analyzed.Then,through the results of the above analysis,problems in audit quality control are found and summarized.Specifically,it includes insufficient control in audit service undertaking stage,risk assessment lacks depth,unreasonable design of audit plan,incomplete necessary audit procedures,the level of audit team needs to be improved,the business review mechanism is a mere formality.The reasons for the problems are analyzed from six aspects: competition for business is fierce,failure to maintain reasonable professional doubt,lack of attention to audit planning,weak awareness of audit quality control,human resource management is lax,prolonged re-election leads to a loss of independence.Finally,in view of the above mentioned problems,this paper puts forward some suggestions and measures to solve the audit quality control problems of DH accounting firm including improving its own competitiveness,strengthening risk-oriented audit,strengthening audit planning stage control,strengthening audit quality control awareness,standardize audit procedure management,improving and strengthening human resource management,strengthening internal supervision and management and so on.In conclusion,this article hopes to combine the case of the audit of JD by DH accounting firm to conduct a comprehensive in-depth analysis,to provides suggestions and references for DH accounting firm and accounting firms of the same or similar type to improve audit quality control.