The Model of Quality Control System in CPA Firms in Malang City, Indonesia

Abstract

Along with the public demands to deliver a business process that is managed well, the spotlight on the performance of public accountant are sharply occurs. It can not be separated from the business malpractice involving professional accountants who create public confidence in the public accounting profession to decrease. This phenomenon has impacted on the public accounting profession in Malang City, Indonesia. CPA Firms in Malang City must continue to improve the professionalism and quality of the audit in order to continue to preserve public confidence in the profession and also be able to compete with colleagues in the country and abroad. According required by the Public Accountants Professional Standards (SPAP), the firm must implement a quality control system. Quality control system should be comprehensive and should be designed in harmony with the organizational structure, policy and practice characteristics. It brings about a question: how are the models of quality control sistem in CPA Firms in Malang City?. This purpose of this study is to develop a deeper understanding how the quality control system in CPA Firms in Malang City. This research included in qualitative research. The results showed that CPA firms in Malang who is the subject of research belonging to a small local firm has implemented quality control system referring to auditing standards that have been determined. In carrying out the quality control, the firm meets the six elements of quality control that raises output auditor good performance so as to produce good quality audit. Model quality control on each CPA firms has similarities which control more informally run and the leadership of the party most responsible for the implementation of these controls. Similarity form of control is motivated by the contextual factors that same CPA firms and adherence to standards and codes of conduct are the same.