Research On Audit Quality Control Optimization Based On Audit Reputation

With the deepening development of modern enterprise systems and the diversification of business models,the integration of resource elements and transactions have been further deepened,companies and their managers urgently need capital investment to expand their business scale,investors are eager to invest to obtain future returns,and disclosure of relevant decision-making information In use,it is necessary to guarantee the function of the modern audit system.However,the occurrence of financial fraud cases of listed companies such as CCID Media and Xintai Electric not only led to the loss of profits of investors in investment-related enterprises,but also caused public doubts about the audit quality of relevant accounting firms.The audit quality control of the accounting firm provides a certain guarantee for the audit quality.The audit quality may not cause audit risks in the short term due to information asymmetry and other factors,which has no direct and obvious impact on the audit reputation of the firm,but it lacks effective audit quality in the long term.Under control,the firm will definitely suffer reputation damage due to the accumulation of audit risk,which in turn will seriously affect the accounting firm's income,scale,and resources.The low reputation will further hinder the long-term development of the accounting firm and even lead to Disintegrate directly.Therefore,how to enhance the reputation of the accounting firm and enhance the trust of the regulatory agencies and the public in the quality of the audit report information has become one of the important issues that the accounting firm urgently needs to solve.In 2019,Ruihua Certified Public Accountants was punished for failing to exercise due diligence in the audit of Kang Dexin.Kang Dexin was suspected of fictitiously increasing operating income and total profits by fictitious sales during 2015-2018 A total of 11.9 billion yuan,Ruihua Certified Public Accountants,as its audit agency,was also punished by the China Securities Regulatory Commission.Ruihua Certified Public Accountants' reputation damage caused Ruihua Certified Public Accountants to lose more than half of its clients and human resources in half a year.Therefore,the paper selects Ruihua Certified Public Accountants as a case,based on the audit reputation perspective,to study the audit quality control of the accounting firm,analyze and explore the path of audit quality optimization of the accounting firm.The thesis is based on information asymmetry theory,PDCA cycle theory and deep pocket theory,through audit quality control and audit reputation theory related research,and through audit quality control analysis guided by long-term reputation.In-depth discussion of the key content of control optimization.Analyze the new case of Ruihua Certified Public Accountants 'audit Kangde,firstly through a series of consequences caused by Ruihua Certified Public Accountants' reputation damage,then through the problems in Ruihua 's audit quality control,and finally analyze its audit quality The cause of the problem of insufficient control.Finally,suggestions were made to optimize the audit quality control of Ruihua Certified Public Accountants,so as to strengthen audit quality and control reputation risk.