Research On Audit Quality Management Of Accounting Firms Based On New Audit Standards

Audit quality is the lifeline for the survival and development of accounting firms.However,the frequent occurrence of financial fraud by large listed companies in recent years has widened the gap in public expectations of audit report quality.In response,government departments have strengthened the regulation and penalties for CPA firms,and the introduction of the new auditing quality management standards in 2020 has further urged and guided CPA firms into controlling audit quality from an internal governance perspective.In the context of high audit quality demand,high regulation and new system,the discussion on audit quality management of accounting firms remains a relevant issue.This paper provides an in-depth analysis of the changes in the new auditing quality management standards and their core requirements,and finds that the new auditing standards place more emphasis on firm-wide integrated management and risk-oriented audit quality management.Secondly,this paper summarizes the regulatory supervision of audit quality in China and the problems found by the regulator,and evaluates the current status of audit quality management effectiveness of accounting firms in China from the perspective of financial restatement and abnormal audit fees by using descriptive statistics.It is found that the audit quality status of the top twenty domestic accounting firms in China is inferior to that of the Big Four international accounting firms,and the audit quality management problems are mainly focused on imperfect management systems and inadequate implementation.Finally,based on the audit quality management framework in the new auditing standards,the changes in audit quality of L accounting firms are studied through the case study method and descriptive statistics,and their strengths and weaknesses are analyzed in depth with regard to the changes in the elements of their audit quality management.The analysis found that L Firm has improved the risk assessment procedures at firm level and business level,increased the quality management responsibility and review responsibility of the head of risk control,improved the system of undertaking high-risk business,improved the whole process project quality review procedures,and strengthened the supervision of secondary and tertiary reviews,based on the above measures,the audit quality of L Firm has improved after the announcement of the new auditing standards.However,the analysis also found that there were significant differences in audit fees between the head office and branch offices of L Firm,and audit quality review failures still occurred at the branch office level.The reasons for this were found to be the lack of integration of personnel and financial management in L Firm,more serious loss of CPAs,and human resource constraints,which affected the implementation of audit quality management.The technical resources are not fully integrated with the audit quality management content.Combined with the quality management framework and requirements in the new auditing quality management standards,this paper addresses the deficiencies in quality management that exist in L Firm and proposes improvements:(1)strengthen the integration of personnel management and financial management;(2)strengthen the supervision of project quality review and strengthen the second audit site review;(3)strengthen human resources management and improve the sense of belonging and access of employees;(4)strengthen the development of audit information systems and information security investment in construction.This paper analyzes the changes in audit quality management of L CPA firm in the context of the new auditing standards,analyzes the reasons why its audit quality has been improved,as well as the problems that still exist in the current situation,and puts forward targeted suggestions for improvement.It is hoped that this will provide a reference for the audit quality management of other large accounting firms in China.