The reasons for the audit requirements are as follows.
1. Audit is a full-time institution and personnel authorized or entrusted by the state. According to national laws and regulations, auditing standards and accounting theory, it uses special methods to inspect and supervise the authenticity, correctness, compliance, legitimacy and efficiency of the audited entity's finance, financial revenue and expenditure, business management activities and related materials.
2. Evaluate economic responsibility.
3. Forensic economic business.
4. An independent economic supervision activity to maintain financial discipline, improve management and improve economic efficiency.
Impact of audit requirements
The Influence of Compulsory Audit Demand on Audit Quality
Because China is in a special economic period, market failure is inevitable. When the market fails, government intervention is usually sought. In fact, state intervention exists widely in all fields of social economy, and government intervention can promote the development of audit services. Similarly, government intervention can also promote the improvement of audit quality.
1 helps to eliminate the adverse impact of management pressure on audit quality.
2. It is conducive to eliminating the adverse impact of non-audit services on audit quality.
3. It is beneficial to eliminate the adverse impact of market concentration on audit quality.
4. It is beneficial to eliminate the adverse impact of audit fees on audit quality.
Refer to the above content: Baidu Encyclopedia-Audit Requirements