The Researth On Public Company Accounying Fraud And Audit Failures

Audit is the statutory businesses of certified public accountants. CPA audits the financial statements of listed companies, and offer more reliable identification information for every shake holder. However, today CPA'audit quality in our country is not very high, and additionally accounting fraud is rampant in listed companies from international Enron to civil Guangxia. They severely damage interest of investors and disturb the economic order of stock market. It is no doubt that the community will not trust in audit profession field when kinds of accounting fraud cases and audit failure cases exposé. Although government departments have adopted a measure to punish them and improve the corresponding control system, accounting fraud and audit failure still exists. Therefore the majority of scholars have linked the two in studies.This dissertation bases on the study achievement of predecessors. Firstly, it summarizes and generalizes the interrelated theory of accounting fraud and audit failure and the relationship between them. Secondly, on the basis of penalty notice of Commission and the Ministry of Finance, this dissertation analyzes status of audit failures in our country and summarizes its feature. Next, this dissertation uses descriptive statistical analysis and logistic to do a empirical research on the accounting fraud in listed companies and audit failure. It select fraud sample in 2005~2009 from penalty notice in the year of 2006-2010.Empirical 1 mainly testes and verifies if the accounting fraud in listed companies and audit failure are positive correlation. Empirical 1 mainly testes and verifies factors of audit failure if listed companies exist accounting fraud. The result is that the accounting fraud in listed companies and audit failure are positive correlation and the factors of audit failure are mainly asset-liability ratio, cash debt ratio, asset margin, degree of related-party transactions and audit expense ratio. CPA should redouble auditing Statement of Cash Flows and improve ability of the anti-fraud to find fraud, but shouldn't only aim to improve the audit working papers.