Research On Audit Failure Based On Audit Conflict Model Take Dahua Certified Public Accountants’ Audit Of Hubei Eastern Gold Jade Co Ltd As An Example

As a third party independent of enterprise owners and managers,audit plays the role of supervisor in economic activities.The audit report issued by the certified public accountant is particularly important for the economic decision-making of the relevant stakeholders of the enterprise.The relevant national regulatory bodies have also continuously strengthened their supervision of the audit industry.Nevertheless,in recent years,there are not a few cases of audit failures exposed by the CSRC.This not only affected the reputation of the enterprises and accounting firms involved in the case,but also made investors in the capital market have a bad impression on the whole audit industry.Therefore,exploring the causes of audit failure and avoiding the occurrence of audit failure has become a highly concerned issue in the industry.When studying audit failure,this paper introduces the audit conflict model.This model not only focuses on the direct performance of the audit subject and the audited unit in the audit process,but also focuses on the relationship behind them,which can find out the root causes of audit failure.This paper first combs the existing research on audit failure and audit conflict theory,explains the concept of audit failure,and also sorts out the audit conflict model.Secondly,the post-audit supervision stage is added when analyzing the audit conflict in each stage of audit.Therefore,the external supervision is added when improving the original audit conflict model on the basis of analyzing the conflict in each stage of audit,The improved model reflects the influence factors of enterprise management pressure on the audit subject,the audit subject resistance to the pressure of management,and the normal supervision of external supervision.Finally,we use the factors reflected in the improved model to analyze the performance of enterprises,audit subjects and external regulators in audit failure cases,and find out the reasons for audit failure.After using the improved audit conflict model to analyze the typical case of the failure of the audit of Hubei Eastern Gold Jade Co Ltd by Dahua Certified Public Accountants,it is found that the main reason for the audit failure is the difference between Hubei Eastern Gold Jade Co Ltd,Dahua Certified Public Accountants and the external supervision force.During the audit process,the pressure exerted by Hubei Eastern Gold Jade Co Ltd on Dahua Certified Public Accountants was too strong,the ability of Dahua Certified Public Accountants to resist the pressure was weak,and the power of external regulatory agencies to supervise was restricted,which finally led to the failure of the audit.Therefore,the key to avoid the recurrence of audit failure is to avoid the excessive pressure exerted by enterprises on the audit subject,enhance the ability of the audit subject to resist the pressure,and enhance the scope and depth of external supervision.Based on this,this paper puts forward suggestions to avoid audit failure from the perspectives of enterprises,audit subjects and external supervision.Finally,this paper hopes to sum up the deep-seated reasons for the audit failure and put forward suggestions for avoiding the recurrence of the audit failure in the future by analyzing the reasons for the failure of the audit of Hubei Eastern Gold Jade Co Ltd by Dahua Certified Public Accountants.