Problems And Countermeasures Of China's CPA Audit Quality

In recent years, a series of finance concoct case exposed more often in our stock market. This makes the finance information of the listed company incredible to the public. In the meantime, the public become to have high query about certified public accountants' quality. It brought grave trust crisis to the audit profession. How to re-collect public confidence and perfect the audit quality is Certified public accountants' utmost urgency at present. Strengthen CPAs' audit quality of research would have importance of reality meaning at this background.This paper was under information dissymmetry and system arrangement. Through analysis of some system factors that influence audit quality, the paper provided theories foundation for the audit quality of CPAs. Secondly, this paper take charge of a section to disclosed audit quality check circumstance in recent years and analysis of "Yin guang xia" audit failure case exposed. It disclosed that the audit quality in our stock market is lower at present condition. Then, the paper analyzed the reason that resulted present condition of audit quality in our country. The reasons are at follows. The law control was shortage of auditing behavior to violate the rules. Currently, what the accounting firm faced is a comparing "loosen" law environment in our country. Morbid law system, especially civil case indemnification that the system lacked or not strict, made accounting firm's indemnification responsibility was almost zero. Because of government's excessive intervention, it is hard to educate to valid needed market of high audit quality. Government's intervention either weakened the high auditing quality needed in market, or caused unfair competition environment in the audit market. The accounting firm's appoint system was distorted. Because of manage mechanism blemish of the listed company in our country, the manager of the company that be audited actually became audit client. That is the manager of the company appointing CPA to audit oneself and deciding expenses for CPA, etc. The organization system of the accounting firms was blemish. Currently, the accounting firms mainly adopt limited liability system. The organized form of limited liability weakened the risk consciousness of CPAs and relaxed audit quality control. At the end, the paper put forward the following suggestion to perfect the audit quality. To establish sound civil case indemnification system, strengthen surveillance of accounting firms, reform the request mechanism of audit, push forward the reform of accounting firm system.