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As is known to all, the audit department in accounting firms always take a huge risk and its economic activities related to the reputation of the audited corporation, the public trust of certified public accountants and the own reputation of the accounting firm. Furthermore, four big international accounting firms occupy a large amount of market share that the rest of the accounting firms’ competition is fierce. That is the reason why accounting firms building a management control system.

The management control system aims to achieve the follow goals for the auditing department to provide reasonable assurance: firstly, it should control the risk and make it adapt with the overall targets. (Robert, 2003) Secondly, the management control system will ensure the corporation’s internal and external information communication true and reliable. Thirdly, the system must obey the laws and regulations; this is the control system’s premise. And then product this control system will improve the management benefit and efficiency. Last but not less important than the others, the management control system must contain a crisis management plan if there are some unpredictable risk that should be solved as soon as possible (Colin, 2011). After this, the firm will not suffered heavy losses by the disaster Sexual risk or human error. In auditing, the procedures selected depend on the auditor’s judgment including the assessment of the risks of material misstatement of the financial statements whether due to fraud or error.

Most of the corporations use the management control system that based on budgetary control and responsibility accounting during a very long time. And now the management control system in auditing department includes system formulation, implementation and evaluation. The system control can constraint all of the employees and everyone in organization should obey it.

Department culture is also a key part of the system because it will make every member in organization has a sense of identity and sense of belonging. Sometimes, incentive measures are indispensable and it can mobilize the enthusiasm and creativity of the employees appropriately. In addition, the auditing department established a management system control that should better do more about fairness and the target's integration and that was the key in all of the system. Building the management control system in auditing department can help the chief auditor make good decision, planning future activities, estimate the organization efficiency and provide personal motivation. But we must understand that the personal targets should always keep in touch with the organizational goals. A good management control system not only pays attention to the organization performance but also pay more attention to the growth of the staffs. When all of the person in the auditing department attention to the long-term development of organization, the management control system will run effectively. With the global economic integration, the corporation will face more and more uncertainty in the fierce market competition. In order to survive, the accounting firm should strengthen its internal effective management control system.
Reference: Colin Scott (2011). Management control system support of initiatives for disruptive students. International Journal