It looks like your boss has not a deep understanding of software and maybe he does not intend to, either. So he has a different language, a different culture.

Quitting a job for a problem like this, before even trying to step forward for a solution is just being a quitter. Quitting is quitting. Do not quit until he makes you sure that you can never understand each other. To be sure about that, you should first try.

Since he does not know our language, and he is the boss, the first step here would be trying to talk to him in his language. What do I mean with language? Let's think together:

We software people, most of us love the job we do, we have a deep connection with what we are doing. Otherwise it does not work and one cannot go on in this business for a long time without loving it or being a complete ...you fill the blanks...

He, however, sees things much differently. With every bug report, while most of us get excited to make the thing work better (no, even if it is sometimes really very stressful, we love problems, just admit it!), he sees it as a failure, a measure of being unsuccessful. First thing he should want to understand is that bugs are good. Bugs makes clients love the company. (Now this is his language) When a customer reports a bug, or when we find one ourselves, after it is solved, it is much better than the situation it never happened. Bugs create customer loyalty (I am serious!), bugs create a great excuse to communication between the consumer and the producer of the software.

To "increase the profit of bugs" you should offer making bug reports even more open. With every bug report and its quick, clean, good solution, customers feel and see that "wow, these guys are awesome! They work really hard. Look at these things they are solving. We were not even aware that software was such a complex thing!" blah blah and blah...

Make your move, talk in his language. Bugs are great for a software company, not a problem. They make us a living.

For team ethics, efficiency, or any kind of talk you would make might work the opposite way you intended. If you want to quit, he will think "aha, my solution started to work from the very first day! Bad links have already started to drop by themselves before they are exposed!" He believes in his idea of finding the bad boys in the company and it is very difficult to convince him otherwise. Especially when you might be one of those bad boys!

So, focus on his real problem: Bugs. Show him that bugs can be very useful. Without any problems, a relationship is boring. Everything that does not kill you makes you stronger. Every bug is a great opportunity that you can use to increase the customer happiness.

This is just one thing you can tell. Think about his concerns and you will find many other items to add to your list. The GOLDEN KEY is to offer an alternative thing instead of fighting with his idea!