Research On Risk-Oriented Audit Item Quality Controlling

The quality of auditing is the assurance line in each accounting firm, which can affect their existence, development and reputation. And it is also the life-line for the existence and development of the CPA industry. Effectively controlling to audit item quality of accounting firm not only should be important content which can strengthen its internal management and promote the whole the accounting firm's operating level, but also has a very important realistic meaning to promote the sound development of the capital market. It marked the setting-up of our country's new auditing criterion system, what has been revised or newly-increased auditing criterion that treasury department released 48 items in early 2006. Hence, on the basis of criterion system of the new operation, how to improve audit item quality and control in time not only has value in theory, but also has guidance functions to the auditing practice of the accounting firm.On the basis of reviewing development of audit quality research, depending on the theory of risk-oriented auditing and auditing quality controlling, the thought of project management is become the member of the system of auditing item quality controlling. Firstly, the thesis has discussed the theory of risk-oriented auditing, the theory of control of auditing quality and the theory of project management. It has proposed that auditing item quality controlling is controlling to a great deal of factors which audit quality is influenced, fully utilizing the favorable factor, overcoming the passive factor, or from passive factor to active factor, to improve the quality of the audit work. In order to solve above-mentioned problems, regarding to two kinds of above-mentioned basic theories, the third part constructs audit item quality controlling system based on the risk management thought and thought of project quality control. This kind of audit quality controlling system which is based on risked-based audit finally can assess the material misstatement risks according to identification of audit environment risk (including to internal controlling environment from the audited unit), and it can assess control risks according to identification of quality control risk from the accounting firm. Finally, the thesis applied the system of audit item quality controlling to the auditing item of the accounting firm.Under the new auditing criterion system, using thought of project management, the thesis sets up audit item quality controlling system of accounting firm according to analysis of auditing risk. According to the fact that the accouting firm has applied the system to auditing item, the system can identify effectively master possibility of mistaking, cheating, illegal behavior from the audited unit, it can prove that the system has stronger feasibility, and realize improving the purpose to audit item quality finally.