Research Of Accounting Firms Audit Quality Under The Government Regulation

In recent year, financial scandal of many domestic and overseas big companies was successively exposing, and accounting firms which audited these companies have unavoidable responsibility. The whole society gradually reduces credibility towards accounting firm and auditor. As a result, the CPA firm’s audit quality problem becomes the focus of attention of academic circles once again. This thesis had investigated the quality of Chinese accounting firms on the basis of current study status to analyze roots of its low quality together with the disadvantage of governmental inspection to propose the detailed inspection measures. The study of this thesis possessed a certain theoretic and applicable value to search and set up the theory system of governmental inspection and audit improving as well as listed countermeasures for the improving for accounting firms in our county.Guiding with the audit quality motivation theory, governmental inspection market theory and game theory, literature investigation and model analysis had been mainly applied to result in a conclusion that the low quality of Chinese accounting firms and necessity of governmental inspection focus on the aspects of advantages and disadvantages of audit inspection model. By the game theory between the governmental inspection and accounting firms fair practice, developed how intensity of the government could improve the quality of the accounting firms audit and make the regulatory costs to a minimum.This conclusion conduced to the completion of audit theory, improving of accounting firms quality and elevation of audit force and efficiency.