Research On The Audit Business Accepting Of Accounting Firms

The audit risks follow the accounting firms at the beginning of accepting audit engagement, so the decision-making of accepting audit engagement is the first line of defense in the risk control policies.This paper especially researches the influencing factors, main modes and risks control of audit engagement accepting of accounting firms on the basis of correlative literatures reviewing.The influencing factors of audit engagement accepting of accounting firms mainly involve audit fees, audit quality, reputation, human capital, nonhuman capital and geographical factor. The accounting firms which high on low-balling lack consideration of engagement accepting risks, so it misleads the accounting firms to accept audit engagement. The accounting firms, which focus on nurturing reputation and providing high-quality audit services, are attractive to the clients that are in the pursuit of high-quality audit services. It is propitious to the optimal configuration of client resources in the audit market. Whether the creative ability of human capital can be used appropriately or not in the accounting firms, it will affect the clients' quality. The accounting firms which are rich of nonhuman capital are easier to obtain the favor of the clients and stakeholders, thereby they are easier to accept audit engagement. The geographical districts of listed companies and accounting firms, affect the firms' audit engagement accepting in a certain extent. The modes of accepting audit engagement can be summed up as waiting for windfalls, volunteering one's services, intermediate-recommended, advertising, and bidding. And they have different advantages and disadvantage. In order to control the risks of accepting audit engagement, it is inevitable to begin from the risks of client, risks of accounting firms and audit environment.