Study On The Audit Quality Problems Of Lixin Certified Public Accountants

In the new era,with the increasingly perfect socialist market economy system with Chinese characteristics,the whole social economy has turned to quality development.As an important part of the market economy,the audit industry should change the development mode and adhere to the concept of high quality development.As the first accounting firm in China Since its establishment in 1927,after many mergers,Lixin Accounting Firm has soared among the top 100 firms announced by the China Injection Association,and surpassed the China Branch of the four major international accounting firms many times between 2014 and 2018 to become the largest domestic firm.However,since 2016,Lixin has received an administrative penalty decision from the China Securities Regulatory Commission every year.Subsequently,the market share of Lixin has continued to decline in the past five years.Especially in 2019,the loss of audit customers increased,and the original audit team changed to an accounting firm.In order to improve the audit quality of Lixin Institute,it is of practical significance to explore the audit quality problems existing in the audit business process of the firm and its causes.This paper takes the representative of the audit industry as an example to analyze the audit quality problems of the accounting firm.By using case analysis and quantitative analysis,compared with the top accounting firms in China,it is found that there are more or less problems in the audit quality of Lixin Institute in each stage of the business process.The paper uses the case analysis method to study the audit quality of Lixin Institute.First of all,through the performance of Lixin Institute and the reasons for being punished many times,taking the company that has been administratively punished as an example,according to the audit business process,that is,the business acceptance,implementation and completion stage,the shortcomings of the firm and the reasons for quality problems is specifically analyzed.Finally,it is still mentioned from the three stages of the business process.(1)In the business takeover phase,it is difficult to ensure the independence of the firm through continuous audit,the low audit fee has t he motivation to maintain customers,the distribution of practitioners is unreasonable,and the professional competence is questionable;(2)In the business execution stage,the risk assessment is not in place,and it is difficult to accurately understand the audit customers and business environment,resulting in insufficient id entification and assessment of risks,and some audit procedures are missing or omitted,which can not effect ively deal with risks;(3)At the business completion stage,the three-level review system was not implemen ted,and even some projects were not implemented even in the group review.On this basis,this paper analyzes the reasons for the audit quality problems caused by the firm from both subjective and objective reasons,mainly include imperfect integrated management of the main branch,loose business process controls,unscientific practice concept of accounting firms,fierce competition in the audit market,lag in penalty timeliness of regulatory departments,and illegal costs.Low.Finally,make corresponding recommendations according to the reasons for the audit problems of the firm.First,standardize quality first.Industry concept,implements industry guidelines and quality controls and management systems,improve pre-ante control,in-event control and post-event control,and integrate the values of quality first into the entire careers process;second,improve the audit business process and pay attention to the problems existing by auditors at all stages of the practice process;third,improve the management level of the branch,cultivate the cultural identity of the employees of the branch,attach importance to the training of auditors,so that the professional ability of the employees of the firm can be roughly maintained at the same level;fourth,improve the penalty efficiency and cost of regulatory departments,including improving industry credit rating system and strengthening the supervision and punishment of the audit industry.Strength.Through the research and analysis of this paper,we hope that it will help Ericsson to find the problems that are easy to exist in the practice process.Since Ericsson is in the leading position in the audit market,its existing problems may also exist in other developing accounting firms.We hope that all firms ca n take a warning and ensure and improve the audit quality.