Research On Audit Cost Control Of SH Accounting Firm Based On Activity-based Costing

Driven by the rapid development of the economy and the increasingly growing number of enterprises,the audit industry and further accounting firms have been propelled.In the fierce industry competition,cost control is a problem that must be considered by any enterprise,including accounting firms,who wants to get better development.Under the premise of maintaining a high level of audit services,the key to enhance the competitiveness of the industry is to make the allocation and consumption of audit resources more reasonable,reduce the audit cost to the maximum extent,and ensure the management to obtain accurate cost information.At present,due to the inaccuracy of audit cost information and the lack of perfect audit cost control system,SH accounting firm's audit cost growth rate in recent years is higher than that of audit income growth rate in the same period.Aiming at the problems on the audit cost control of SH accounting firm,this paper reviews abundant relevant researches for the purpose of setting up an activity center through introducing activity-based costing(ABC)and combining the characteristics of audit business,thereby finding out the corresponding resource-activity divers and constructing an audit cost control system that consists of three important steps,including budgeting,accounting and assessing.The audit cost control system is effectively applied in SH accounting firm afterward,supported by relevant policies recommended in the meantime.The system improves the accuracy of audit cost accounting of SH accounting firm,strengthens the control of audit cost,and improves the industry competitiveness of SH accounting firm.This study shows that:(1)The key indicators that affect the audit cost budget of SH accounting firm are the audit necessary working hours and the number of auditors in different positions.Through the analysis of audit activity chain,we can grasp these two budget indicators more accurately,and effectively reduce the actual audit cost;(2)The text uses activity-based costing to modify the cost information of each audit project through driver analysis.The original cost accounting method of SH accounting firm takes audit man hour as the allocation basis of indirect cost,which leads to the distortion of audit cost information.The project audit cost with larger audit man hour is overestimated by the original accounting method,and the project audit cost with smaller audit man hour is underestimated by the original accounting method;(3)The audit cost control system based on activity-based costing can make SH accounting affairs in the environment of continuous improvement,we constantly optimize the audit process and improve the effect of audit cost control.In this paper,the audit cost control system based on activity-based costing solves many problems in the audit cost control of SH accounting firm.In the audit budget link,the operation analysis helps SH accounting firm to form a better auditor allocation plan and audit execution plan,so as to ensure that each audit project can be completed efficiently with fewer auditors and produce high-quality audit reports during the actual execution;the accuracy of the cost information of each audit project is obtained by using the activity-based costing method for accounting,and it can make clear the main responsibility activity center which causes the audit project cost to be too large,which is the key point of audit cost control;activity value-added judgment can avoid the phenomenon that unnecessary audit procedures are not eliminated in order to reduce audit cost;accurate audit cost accounting can help the management of SH accounting firm to judge The rationality of audit fees,while taking into account the profitability of the project,sets a reasonable cost control goal,and then achieves the cost control goal to achieve long-term development.