Career Prudence Affects Audit Quality Research

In recent years,a variety of financial audit failure cases emerge in endlessly,most of which are due to CPA's lack of proper caution in the process of auditing,thus greatly discounting the image of CPA.Some users of audit reports even suspect that CPAs conspire with relevant personnel in order to obtain certain benefits.On the basis of previous studies,this paper first defines the concepts of professional prudence and audit quality;then,combs the relevant literature of professional prudence and audit quality,and discusses the theoretical basis of this paper;then,it analyses and summarizes the specific reasons of 17 announcements of administrative penalties for audit failure issued by China's Securities Regulatory Commission from 2016 to 2018;and then,in order to revive them.Taking Longde specialty IPO audit as an example,this paperdeeply analyses the process of professional prudence affecting audit quality,and analyses the reasons why CPAs do not maintain proper professional prudence from three aspects: pressure,opportunity and excuse.It also puts forward some pertinent suggestions on how to solve CPAs' professional prudence and audit quality.First,CPAs should maintain good professional motivation and endow with "soul".Second,accounting firms should rationally arrange work progress,carry out salary system reform,establish prudent office culture,and improve the internal control of project quality;third,supervision departments should expand the scope of supervision and increase punishment.At the end of this chapter,a summary is made and prospects are put forward.