Audit Project Quality Control Problems And Countermeasures

The 19th National Congress of the Communist Party of China put forward that "China’s economy has shifted from a stage of high-speed growth to a stage of high-quality development,and is now in a crucial period of transforming the development model and optimizing the economic structure",which shows that "high-quality" development is the direction and goal of China’s long-term economic development.As a third-party intermediary service provider,the improvement of the quality control level of audit projects by accounting firms can greatly contribute to the improvement of audit quality and even market economic activities.Although the supervision of firms and related practice quality inspection work has been deepened in recent years,there are still many audit project quality control problems,followed by the frequent occurrence of penalties,This has led many investors to become increasingly distrustful of audit reports issued by accounting firms.Therefore,as the "economic police",it has become urgent for accounting firms to ensure their independence,improve the quality control of audit projects and play the audit role efficiently.In this paper,we have selected a representative SW firm’s audit of Le TV as a case study.Firstly,on the basis of defining the core concepts and systematically clarifying the requirements of the auditing quality management standards for accounting firms,we have identified many deficiencies in the quality control of SW firm’s audit projects in the light of the many penalized projects.The audit quality control of this project was found to be inadequate.It was found that the main reasons for the problems in the audit quality control of the project were: failure to understand the professional ethics and integrity of the client’s management and failure to implement appropriate quality control procedures for the engagement;lack of a reasonable audit plan and incomplete understanding of internal controls;unreasonable execution of correspondence and other audit procedures;and irregularities in the audit draft and inadequate monitoring and review.On this basis,this paper puts forward the countermeasures to improve the quality control of audit items,mainly in the four stages of the audit process put forward targeted measures: the engagement stage should evaluate compliance with the requirements of the Code of Ethics and implement appropriate quality management procedures for maintaining client relationships and audit engagements;the engagement preparation stage should develop a reasonable audit plan,gain a comprehensive understanding of internal controls and perform penetration testing;the engagement In the execution stage,we should strictly implement control tests,design targeted audit procedures and improve the quality of correspondence procedures;in the completion stage,we should strictly implement a three-tier review system for audit drafts and establish quality control monitoring procedures for the entire project.We hope that the above suggestions will provide ideas and references for optimizing the quality control of audit projects and contribute to the high-quality development of audit and economy.