Research On Internal Governance Of Accounting Firm And Improvement Of Audit Quality

An accounting firm supervises and verifies the financial information of the capital market.It has the effect of improving the quality of the financial information of the capital market and is of great significance for the stable development of the capital market.However,under the rapid development of the capital market,there have been repeated financial frauds by listed companies and IPO companies,and false accounting reports issued by accounting firms have not only greatly reduced the trust of investors,but also seriously damaged the reputation and social image of accounting firms.It also adversely affects the fairness and equity of the capital market and causes disorder in the market order.The internal governance of an accounting firm is an important guarantee for improving its audit quality.Internal governance is directly related to the audit quality management and various risk control capabilities of the accounting firm.Therefore,improving the internal governance of accounting firms can promote their credibility to practice,not only maintain social morals,but also have important significance for maintaining the normal economic order of the market.This article selects Ruihua Certified Public Accountants as the research object,and uses case analysis method and literature research method.Based on the stakeholder theory,principal-agent theory,and internal control theory,according to the research ideas of raising,analyzing,and solving problems,it aims at Ruihua.Aiming at the current audit quality of Ruihua Certified Public Accountants,analyze the existing problems from the perspective of internal governance.In recent years,Ruihua Certified Public Accountants have been punished by the regulatory authority of the certified public accountant industry.The audit quality has declined year by year.Ruihua Certified Public Accountants in China are relatively large and well-known accounting firms.Therefore,Ruihua Certified Public Accountants was selected as the accounting firm.The research object is representative.This article mainly analyzes its development history and the penalties which are received in recent years,at the same time,summarizes the problems analyzed,and concludes that Ruihua has five aspects: internal governance risk assessment,control activities,information communication and exchange,and internal supervision.Come to the conclusion that there are flaws that have a negative impact on audit quality.Based on the above analysis,suggestions for improving the existing problems of the firm are made,and the relevant governance system and risk management system are improved.After analysis and research,this paper believes that accounting firms should pay attention to the improvement of audit quality and strengthen the improvement of internal governance.We must be committed to human resource management,adhere to the people-oriented,establish a reasonable and scientific salary system,and strengthen the construction of spiritual culture,adhere to the quality-oriented cultural philosophy;improve risk management awareness: pay close attention to quality control systems,standardize business execution processes;branch management,establish an internal reward and punishment system,adhere to clear rewards and punishments;improve the three-level review system,and improving Ruihua's audit quality,it will also provide a reference for improving the audit quality of the certified public accountant industry and promoting the healthy and sustainable development of accounting firms.