Research On The Quality Of Administrative Penalties And Audit Quality

The audit quality of accounting firms is the evaluation criteria of the government’s practice level in the public,and in recent years,all sectors of society have paid more attention to the violations of the punishment.According to the CSRC punishment announcement,from 2018 to 2022,the CSRC imposed administrative penalties on 14 firms and 61 certified public accountants,and many firms were punished by the CSRC multiple times within 5 years.In 2021,the China Securities Regulatory Commission,the Ministry of Finance,and the AICPA will all increase inspections and penalties on accounting firms,and the number and amount of penalties will also reach their peak in2021.The punishment of the CSRC has attracted the attention of the office of the firm,enterprises,and investors to the audit quality of the firm.Therefore,this article has certain practical significance for the research of the audit quality of the firm.This article uses the literature research law and case analysis method to study the most typical cases of N Campus firms with the largest number of penalties and larger scale in 2018-2022 as a typical case.This article studied the announcement of administrative penalties and supervision by the Securities Regulatory Commission and the Ministry of Finance from 2020-2022,and analyzed the problems and reasons existing in the N fund according to different subjects.In 2020-2022,Firm N received 4administrative penalties and 20 administrative supervisions,involving a total of 51 certified public accountants.The audit quality of N firm mainly has the problems of insufficient pre-audit preparation and inadequate quality control,including not understanding the audited entity and its environment,and insufficient quality control of projects and branches;The certified public accountants of firm N have problems in the implementation of audit procedures,mainly including failure to communicate with the former certified public accountant,inadequate risk identification and assessment procedures,defects in bank and correspondence confirmation procedures,unrecognized related party transactions,inadequate implementation of operating income and audit procedures for important subjects,and failure to review the work of external experts.And put forward targeted optimization suggestions for N firm: from the perspective of an accounting firm,N firm should correctly evaluate its own professional competence and carefully select the audited unit;strengthen the control of audit quality and strictly implement the three-level review procedure.From the perspective of registered accountants,the registered accountant of the N office should attach importance to the communication with the former auditors and the risk identification and evaluation of the audit unit;it should always maintain higher independence and career,and attach importance to the implementation of substantive audit procedures.Experts The conclusion is reviewed.Thereby improving the audit quality of N firm and reducing the risk of punishment and litigation.