Ruihua's Case Study On Huaze Cobalt And Nickel Audit Failure

With the rapid development of the capital market,accountants and firms are playing an increasingly important role,and their functions have been unprecedentedly magnified.This also represents an increase in people’s demand for auditing.Increasing confidence in corporate investment,and also attempting to see the authenticity of corporate information through such intermediaries,at this time,the need for audit quality has increased.However,in recent years,the occurrence of audit failures has occurred frequently,which has reached another staged climax,leaving the CPA industry,which has long been regarded as the"economic policeman" of the capital market,to face a crisis,triggering people’s The functions of accountants have caused some doubts,the credibility of certified public accountants has begun to decline,and the reputation of accounting firms has also started to be damaged.This means that the failure of the audit will not only damage the economic interests of stakeholders,cause economic losses,but also make CPAs and firms have an unprecedented credit crisis.Therefore,it is of great practical significance to analyze the causes of audit failures and discuss countermeasures for audit failures.As a case of a family business listed on the backdoor of a family business,the behavior of its shareholder-owned party has attracted widespread attention in the capital market and can be used as a typical case of CPA audit failure.At the same time,Huaze Cobalt and Nickel,as an audit client that has been merged and merged by the firm,has just happened to be in the fourth wave of the merger of the firm,and it is necessary to strictly audit the client’s screening after the merger.The combined internal management and integration are both exploratory and reflective,and in this respect,their research is novel.This paper uses case study method to sort out the relevant literature of audit failure,and defines the concept of audit failure.Based on risk-oriented audit theory,fraud triangle theory and audit conflict theory,this paper audits Ruihua on Huaze cobalt nickel.The failure process was reviewed,and the reasons for the audit failure were analyzed from the aspects of CPA,accounting firm,audited entity and industry supervision department.On this basis,countermeasures were proposed.As far as CPA are concerned,risk assessment and risk response should be strictly based on risk-oriented audit theory,and at the same time,practice ability and independence should be strengthened.For accounting firms,audit clients should be carefully selected,business quality control systems should be improved,and internal management should be strengthened.As far as the audited unit is concerned,the governance structure and internal control should be improved.As far as the regulatory authorities are concerned,it is necessary to strengthen the basis of laws and regulations and increase the intensity of administrative penalties.