Analysis How to Improve the Audit Quality in Australia 改.docVIP

Analysis How to Improve the Audit Quality in Australia Introduction The audit quality to the development is so much like the air to mankind. Without high quality, auditing would loss the intended meaning. In terms of the significance of audit quality, government and professional bodies has taken measures to enhance the drivers of high quality in respect of legislation stipulation, execution, rigorous and regular review, punishment. Discussion Through more than four hundred years development, auditing has become an important profession in today’s economic environment. Moreover, the established capital market triggers more dependence on the assurance provided by auditing firm throughout the world. Under such a background, the quality of the auditing service proves to be a focus that all the stakeholders, including the general public, government, the professional body, financial report preparers and regulators will concern. A reassuring auditing quality not only enhances the confidence of the investor in the market, but also underpins the measures that administers take to ensure a healthy economic environment. On the contrary, the low auditing quality gives birth to an individual bankrupt of a company or even worse, a widespread depression through a country. Given the essential position of audit quality in the economy, the regulator of the whole country should concern every procedure to advance the quality of the assurance service and auditing engagement. All the factors should be considered in legislation stipulation, execution, review, and punishment. Legislation stipulation The legal framework relating to audit regulation was compromised by four parts – Corporation Act, FRC, the company auditor registration system and accounting auditing standards. Most of the requirements concerning the audit quality can be found in the stipulation in the Corporation Act. The original motivation power is that the Corporation Act requires the financial report should be of tr