Study On Audit Quality Control Of Accounting Firms

Audit quality is not only an important factor affecting the development of accounting firms,but also the key to determining the comprehensive strength of accounting firms.However,in recent years,there have been numerous cases in which Chinese accounting firms have been punished by regulatory authorities such as the China Securities Regulatory Commission for financial fraud of listed companies,reflecting the serious audit quality problems of accounting firms in China.The quality of the audit depends entirely on the effectiveness of the audit quality control of the firm.Therefore,whether it is at the level of market demand or its own development,accounting firms need to establish an audit quality control system and strictly control their audit quality to ensure the provision of high-quality audit results.Facts have proved that effective audit quality control can reverse promote the sustainable and healthy development of the firm and the continuous improvement of social reputation,so the research on the theme of audit quality control of accounting firms is carried out,improving the audit quality control of accounting firms,giving full play to the role of third-party independent auditing,and regaining the trust of the public has become a practical problem that accounting firms in China urgently need to solve.This thesis selects Dahua Accounting Firm,which is representative of domestic capital firms in China,for case study,combined with its administrative penalties for audit quality control failure from 2018 to 2022,to understand the current situation of audit quality control of Dahua Accounting Firm,through the exploration of individual audit cases of Dahua Accounting Firm,analyze in detail the problems and causes of its audit quality control,and put forward targeted countermeasures,hoping to learn from the development of the audit industry.It is worth noting that audit quality control is a complex system,therefore,it also includes external factors such as regulators,audited objects,and industry self-regulatory organizations.However,this article only starts from the level of the firm itself,conducts in-depth research on it,analyzes its own problems,and proposes feasible countermeasures,that is,audit quality control in a narrow sense.Based on the research of existing scholars,this thesis uses the "deep pocket" theory,principal-agent theory,signal transmission theory and risk management theory,takes Dahua CPA Firm as the research object,and explores the audit quality control system of Dahua CPA Firm through literature research,case analysis and comparative analysis.It is found that there are some problems in audit quality control of Dahua CPA firm,such as failure to carefully select audited clients,lack of in-depth risk assessment,inadequate implementation of substantive audit procedures,mere formalities of audit review mechanism and inadequate practice level of auditors.The reasons are fierce competition to undertake business,not to maintain reasonable professional suspicion,audit execution process control is not strict,audit quality control consciousness is not enough,human resources management is not perfect.Finally,in view of the above problems,this thesis believes that Dahua CPA firm should take the following measures to improve the audit quality:(1)carefully undertake audit business to enhance the reputation of the firm;(2)Strengthen the risk-oriented audit model;(3)Strengthen the quality control of audit process by the firm;(4)Improve auditors’ awareness of quality control;(5)Strengthen the quality control of human resources in the office.We also hope to provide a new solution to the audit quality control of the similar accounting firms and promote the accounting firms industry to achieve high-quality development.