Research On Audit Risk Of Da Hua Accounting Firm To JY Jewelry Company

Along with the continuous increase of our socialist modernization,the system of our socialist economy has been improved rapidly in many aspects,but there is still a lack of market supervision among them.With the continuous expansion of the capital market,the exposed problems are increasing day by day.Some companies choose to avoid the relevant departments’ financial audit by fabricating false financial information about their own companies.Therefore,in this case,it is very necessary for certified public accountants to provide accurate and timely audit results.If there is financial fraud in the financial report and the situation are likely to have a negative impact on investors’ decision-making,such as a series of financial fraud cases in recent years,have brought huge economic losses to investors,but also to the audit industry reputation and healthy development caused serious infringement.In the face of the frequent occurrence of the audit failure cases and the gradual decline of the credibility of our audit industry,Dahua accounting firms should focus on its own perspective,adopt the corresponding strategy analysis in various aspects,and strive to find the defects in its own work and shortcomings in the process of development with a positive attitude,to get rid of the operating difficulties of the existing accounting firms.Only by improving my working ability can I re-establish my own advantages in today’s complex market competition environment,strengthen a series of level control related to audit quality,reduce mistakes in the audit process and prevent audit failures,improve my own competitiveness and establish a good reputation among customers.In this way,we can continuously enhance the public trust ability of enterprises in the industry and improve the development level of enterprises in the industry in the future development process.Therefore,the study of audit risk points can not be ignored.Based on the theory of information asymmetry,principal-agent theory and fraud triangle theory,this paper takes Dahua CPA Firm’s audit failure of JY Jewelry Company as the research object,specifically analyzes the audit risks Dahua Firm faces in the audit process,and proposes corresponding enlightenment through analyzing the causes of audit risks.First of all,this paper introduces the background and significance of the research,and expounds the frequent fraud incidents in recent years,while the credibility of the audit industry has been questioned.It is urgent to improve the identification of audit risk items and prevent audit failure.Then it introduces the theoretical basis used in this paper,which lays a good theoretical foundation for the analysis and study of subsequent events.At the same time,the case review of Dahua Exchange’s audit process of JY Jewelry Company was carried out,and the company’s situation and audit case process were introduced,as well as the punishment result of China Securities Regulatory Commission on both audit and audited parties.The third part focuses on the analysis of the specific performance of audit risks in the audit process of Dahua Institute.The fourth part analyzes the causes of audit risk,and in the fifth part draws the corresponding enlightenment,how to reduce the audit risk in the audit process of the firm,hoping that the firm can pay more attention to the screening of audit risk items in the future audit work,to prevent audit failure.The last part is the conclusion and prospect,hoping to strengthen the credibility of audit industry and continue to develop steadily.