The measures to improve professional competence
Abstract:Professional competence is one of the fundamental principles of the Code of Ethics for Professional Accountants.However,more and more firms accept engagements without enough competent professional skills,which turns out that,there are so much problems they can't figure out or deal with,at last,they have to take the legal liabilities.Along with the expositions of fraud made by listed companies.The public become suspicious about professional competence of the certified public accountants.Because of the indignant denouncement of the investors,their prestige drops to low.For this reason,professional competence of the certified public accountants draw pubic's attention.Moreover, in some links,such as,the accounting courses in the colleges, follow-up education and practice experience,obstacles which are unfavorable to maintain and improve professional competence still exist.For example,the colleges consider theories as priority over practice;the content and method of follow-up education are dated;the firms don't attach importance to assess professional competence of the accountants.The essay is about the measures to improve professional competence. Ⅰ.The importance of possessing professional competence
Professional competence is the foundation of credibility.
In our country,certified public accountants are compared to "economic police" with no salary,which speaks highly of their contribution to the social economy.Credibility is a key feature of the certified public accountant profession.Audit opinion has social credibility.For the purpose of bearing the social function,which is credibility,certified public accountants must possess professional competence.If one does not have unique method and ideas,he cannot protect the interests of investors and consumers in the market economy.For the certified public accountants,losing credibility is losing chances for survival.In summary,professional competence is the foundation of credibility. Professional competence is one of the requirements of the Risk-Oriented Auditing Model and the Code of Ethics for Professional Accountants. The risk-oriented auditing model requires auditor to understand the audit client and its environment and the risks can lead to material misstatement,consider its economic environment,industry's situation,management objectives and strategies and risks confronted with at a macro level,and analyse the fraud or errors may exist in economics action.The certified public accountant should judge the client's operation ability and project.Thus,higher demands are presented on professional competence.The certified public accountant must possess knowledge of accounting and auditing even the knowledge about operating.In such circumstance, cultivating and improving professional competence have been an urgent demand on the risk-oriented auditing model. The principle of professional competence requires all professional accountants to attain and maintain professional competence through education,cultivation and practice.If one provides professional services in the condition of lacking enough knowledge,skills and experience,it will be a fraud.As a qualified certified public accountant, one should not only realize his ability adequately,have faith in himself, but also know his lack of professional competence.If he does not realize the incompetence of his professional skills and perform the work he can't finish,it may bring bad effect on the client and even the society. The maintenance of professional competence requires certified public accountants to be aware of and understand the development of the relevant technical, professional and business for the sake of maintaining professional competence.Continuing professional development enables a certified public accountant to develop and maintain professional...