Certified Public Accountant Audit Failure

With the development of capital market of China, more and more people are involved in audit service. People began to pay more attention to it. However, audit failure happened in both developing countries and developed countries. As in China, audit failure happened frequently in the last few years. Some of them have made great damage to both the capital market and the reputation of the audit industry. In this paper,I will do some research about this issue.The main content of this paper can be divided into three parts:Part One: General overview about audit failure.This part introduces a definition of audit failure on the basis of the existing definitions; discriminates some similar concept, makes a brief introduction of the current situation of audit failure, states the damage audit failure may make.Part Two: A scratch of the cause of the audit failure.This part introduces three factors that may cause audit failure: Audit Demand, Audit supply, Supervisory systems.Part Three: Ways to prevent audit failure.This part introduces several actions to prevent audit failure according to the causes mentioned above.This paper was written in a normative way.