Research On Quality Control Of Audit Projects Based On The "PDCA Cycle"

As of December 31,2019,there were 8,953 companies listed on the New Third Board and 3,777 listed companies in China,but only 40 accounting firms qualified to provide audit services for these companies.Before the implementation of the new Securities Law,only those large firms were qualified to engage in the audit business of listed companies,resulting in the number of accounting firms with securities qualifications being disproportionate to the sum of the number of companies listed on the New Third Board and listed companies,which had a negative impact on the quality of audits.On March 1,2020,the new Securities Law was officially implemented,changing the securities qualification system from the original approval system to the "dual filing system",which alleviated the problem of the huge disparity in the number of accounting firms qualified to engage in securities services and listed companies.In the case where any accounting firm is likely to audit a listed company,the regulator’s focus on the quality of audit projects has shifted from strict prior supervision to dynamic supervision of the whole process.For small and medium-sized accounting firms that lack audit experience in securities service business,how to do a good job in audit quality control in the process after undertaking the audit business of such companies is an important topic worth studying.PDCA cycle theory is often used in quality management,and the application field is also widespread,and the effect on quality improvement is also obvious.Shenzhen Tangtang Accounting Firm’s audit of ~*ST Xinyi is the first small and medium-sized firm to audit the business of a listed company under the new Securities Law.On February 28,2022,the CSRC imposed penalties on the court for this business.It is precisely because of the first time to provide audit services for listed companies,the audit quality control done by Tangtang in the course of this audit has some good points,but there are also shortcomings.This paper uses the PDCA cycle method to analyze the audit process of the case,summarizes the experience and lessons learned at each stage,analyzes the causes of the problems,and finally puts forward the optimization suggestions for audit quality control according to the results of the analysis,so as to improve the audit quality of the project as a whole.Through the research of this paper,it is concluded that: First,the four stages of the PDCA cycle are compatible with the entire audit process,and the use of this method to analyze the audit process can clarify which aspects to improve the audit quality.Second,for a high-risk audit project such as ~*ST Xinyi,the risk of the audited unit and the firm’s own risk tolerance should be fully considered before undertaking,and the audit quality control of each link should be done after undertaking.Third,when selecting audit team personnel,it is necessary to comprehensively consider professional competence,work attitude,professional ethics,etc.,and require the audit personnel of the project team to carefully perform audit work with ’quality first’ as the guide.Fourth,the laws and regulations of the regulatory authorities should be continuously improved,so as to have a better guiding role in how to do a good job in audit quality control under the new Securities Law.