| Since the reform and opening up,auditing has played an important role in the prosperity and development of the capital market.However,domestic and foreign regulatory agencies’ penalties and industry associations’ audit quality reviews show that even the large accounting firms also need to continuously improve audit quality.This paper takes2007-2016 regulatory penalty notices as the sample to summarize the audit quality problems of local accounting firms,and notices that some accounting firms were punished many times,some audit quality problems are not solved much,some audit quality problems in key areas needs attention,and the inspection has the characteristics of hysteresis.This paper wants to find out what causes the phenomenon and how to improve it? In 2014,IAASB officially released the audit quality framework,helping stakeholders to better understand audit quality and the influence factors of audit quality,and to explore the methods of improving audit quality.In the process of strengthening the local accounting firms,the framework provides a reference for the analysis of the factors affecting the audit quality of local accounting firms from the perspective of improving the audit quality.Based on theoretical analysis and case study,this paper selects ABC Accounting Firm as the typical case,employing the audit quality framework of firms’ level issued by IAASB to analyze the factors affecting audit quality of ABC Accounting Firm.In the analysis,this paper also refers to and compares with big four accounting firms,aiming to get the inspiration on how to improve audit quality of ABC accounting firm.Based on the analysis,this paper finds that contracting mode of operation and management,lack of risk control consciousness during the development,and imperfect of the development of partnership culture and values are the main factors affecting audit quality of ABC accounting firm.Faultiness of the staff salary system,training and follow-up education system,audit methods and audit tools,and quality control system are the secondary factors.Although afterwards punishment is necessary,it will be more efficient to help accounting firms improve audit quality if the regulator agency can combine punishment with remind in advance and inspection in the process.The audit quality improvement is a continuous process.IAASB provides a comprehensive view of audit quality framework to research factors affecting the audit quality of local accounting firms.This study is significant for constantly paying attention to and improving audit quality of local accounting firms. |
