Influencing factors and improve audit quality analysis

Abstract: Entering the 21st century, China's CPA industry to achieve rapid development and great progress but also exposed a series of serious problems. In the transition economy period in the capital markets, the frequent occurrence of listed companies accounting fraud. CPAs independence, audit quality by theorists, practitioners and the general investor attention. However, domestic listed companies for audit quality Research is still relatively small, therefore, a measure of audit quality and impact factors is very valuable .

Keywords: audit quality, CPA, factors, metrics

First, audit quality factors
Audit profession lies in its existence or the objective needs of owners and managers can effectively reduce the conflict of interest between the agency costs of external services provided by its product quality decisions. Audit quality including results of audit quality and audit quality in two parts , both the difference between the two, but related. the quality of work is the outcome of quality assurance, quality of the outcome is a comprehensive reflection of the quality of work [1]. Only high quality audit services to make financial reporting a higher information content, reduce principal between the agent and agent costs, thereby increasing the economic value. On the contrary, low-quality audit services not only can not increase the economic value, but simply a waste of social resources.

In the market economy, especially in the capital market operation, the implementation of the CPA independent audit of financial statements play an indispensable role. The role of specific performance monitoring, early warning and the mechanism of financial compensation for the three independent audit quality requirements, it is the mechanism of these three areas by the internal decision. based on the status of China's capital market, the main impact of the accounting firm audit quality, corporate governance and audit market these three factors.

1. Accounting firm to audit quality
Accounting firm to audit quality of firms mainly in the form of the size composition, audit fees, market share and the professional quality of auditors. The larger accounting firms on a single customer dependence on the lower income, and opportunities the greater the opportunity cost of behavior, it is generally believed that large firm issued more stringent identification fraud and the ability of the audit opinion was stronger in small firms, accounting firms in certain industry expertise or the audit of the few industries a special breed of business expertise, it makes accounting firm audits in these industries occupy a larger market share. For the same industry, different customers have the same or a similar organization and operating mechanism, there are industry-specific accounting or auditing standards, industry-specific knowledge can make as an industry expert (industrysPeeialist auditors play better effect. In addition, the audit is a very practical work experience of audit staff is crucial. auditing experience in decision professional judgments of the audit staff and the collection efficiency and effectiveness of audit evidence. experienced auditors in the audit work, more likely to find high-risk areas of audit, reduce audit risk and improve audit quality. auditors need to have audit, accounting , legal, tax, management theory and practice fields and computer technology, the same time, the uncertainty of economic activities and accounting and auditing activities accounting judgments, requiring a high level of professional auditors to determine the ability to focus the audit in risk. professional audit staff is essential. the lack of practical experience and professional judging bias, not only will waste a lot of audit costs, but also easy to form an audit opinion wrong, leading to lower audit quality [2].

2. Corporate Governance on Audit Quality
Sound corporate governance structure can shape the real needs of those who audit, to prevent the imbalance between the audit, so that truly independent audit to maintain and strengthen mutual trust between the client and the trustee, the basis for a reasonable safeguard their respective interests. Instead, the company governance structure Deep audit relationship will affect the pattern of [3]. corporate governance by way of incentive and monitoring constraints management behavior, to reduce its external auditors, the audit process and the audit opinion of the intervention to ensure the independence of external auditors, thus ensuring audit quality. major shareholders of listed companies tradable shares held by the ratio of the governance structure of listed companies, the proportion of independent directors and senior management of listed company's level of education will affect the audit quality.

3 Audit of the market for audit quality
CPA audit services is the main target of the capital market, the annual report of the audit of listed companies is an important part of the independent audit. Audit environment by different environmental factors specific composition of the audit which includes both the existence and development of favorable factors, but also contains the constraints and resist some of the disadvantages of audit activities. Two factors are against each other, and dependent upon, the former have a positive effect, which have a negative impact, both have some comprehensive audit of the final results. This article discusses the main environmental audit of the audit market competition, concentration and audit the regulatory system.

Second, the measure of audit quality
The basic features are the authenticity of the audit, effectiveness, economy, timeliness, and legitimacy. I believe that when the audit process and results to meet the basic characteristics of the audit to the audit can be said that the audit of higher quality. Other words words, the basic characteristics of the audit can be used to measure the quality of audit. Specific expressed as:
1. Timeliness of Economy
Refers to the need to improve the efficiency of audit work, saving the cost of the audit, and implement "cost-effective" principle, with minimal input for maximum output. And to be within the prescribed time, quality and quantity of the completion of the audit task.

2. Real legitimacy
Refers to the audit process is real, objective, the results of the audit accurately reflects the scope of the audit, according to the program. And must carry out the audit according to the principles of audit, in accordance with auditing standards require the audit, including audit procedures are legal, legal evidence, such as dealing with legal penalties. authenticity of different backgrounds have similar requirements of auditors, the audit were using the same method, the implementation of audit matters of the same audit, relative to the same conclusion can be drawn. make the audit work of the "product" will help the right to make decisions on its users to play the role of audit work.

Links to Research Papers Download http://www.hi138.com three audit quality improvement measures
1. Strengthen the audit staff education to improve the quality of audit staff
Audit is a service that is ultimately done by the auditors. In a variety of factors affect the quality of audits, the human factor is crucial, the audit staff attitudes and their quality determines the quality of audits. First, the accounting firm choice of personnel related to the firm's survival and development. in personnel selection options to customize a complete system of recruiting and assessment methods. Second, the professional training of audit personnel to accelerate the updating of knowledge, enhance their professional competence. can the organization of regular and irregular internal training or the use of spare time to enhance self-learning, can also audit the implementation process, so that the audit experience to take charge of the project audit or audit staff to guide new employees in the audit work to improve professional competence. Again, to promote technological innovation and application of the audit. such as promoting the application of advanced audit software, and promote the sampling software applications, and promote risk-oriented audit approach Research and applications.

2. To strengthen supervision of audit fees
First, the audit fee market, the regulatory focus should be placed in the existence of firms to attract business by lowering fees or arbitrary charges, the existence of listed companies to audit fees as a bargaining chip to achieve the purpose of purchase of the audit opinion and other improper behavior, After the discovery of relevant laws and regulations shall be severely punished. Second, the annual audit fee disclosure regulation needs to be strengthened. the Commission should pay the firm to further disseminate information on remuneration and disclosure guidelines, in particular uniform standards, so that the information disclosed comparable between , strictly require listed companies to press the "standard" requirement for disclosure. based on listed companies may use audit fees as a bargaining chip to buy audit opinion, the replacement of office shall pay remuneration to the company to do a more detailed description of the situation.

3. Improve the corporate governance system
First, we must improve and perfect the system of board of directors and independent directors. In addition to CEO other than the members of the Board constituted by the outside directors, outside directors can not have been hired, or with the company, senior executives have significant business relationships between. To establish an external independent directors continuing education requirement for independent directors with certain financial, accounting, auditing and financial knowledge, contribute to their rapidly changing business with the company to keep side by side to help ensure that they do to control duty. Second, all of the audit committee should independent directors and to exercise the power to hire auditors. so that you can change the current existence of the wide pattern of large shareholders, listed companies in China in particular, to change "dominance" of the capital structure of the status quo, behind the pattern of corporate governance , independent supervision of management, reduce the financial loss of control due to its control, maintenance of medium and small shareholders, independent directors can play professional expertise, in particular the audit committee of independent directors of the financial accounting expertise, making the selection of auditors more reasonable, to communicate more easily.

4. Improve the auditing environment
Focus on creating an enabling environment to improve the quality Shen Ji, focusing on economic law Research, improve the market economic system, create a fair, just and reasonable competition, avoid the accounting and auditing work, the emergence of unfavorable factors. Focus on the legal, political, environmental studies, establish and improve the relevant legal system, a choice for improving audit quality of audit institutions set up. to strengthen the implementation of auditing standards and auditing responsibilities will fundamentally improve accountability audit of the status of poor quality. Recalling the failure of the CPA audit case can be found Most cases have had serious consequences, such as Guangxia events, Lam shares events, however, a clear responsibility and accountability for the audit but not rigid, the responsibility of the relevant persons punished enough.

Abstract: The 21st century, China's industry at a rapid development and considerable progress has also revealed a serious problem. The transition economies in the capital market, the frequency of accounting frauds. Public accountants audit quality of the independence and by practice and theory, and the investors widespread concern. However, domestic for a listed company audit quality of Research is still comparatively little, therefore, the quality of auditing the measure and influence is very valuable.

Keywords:: audit quality; registered accountant; impact factor; measuring standard Links http://www.hi138.com Research Papers Download