A Study On The Failure Of Listed Companies' Audit

Audit failure means the CPA did not follow the guidelines, while not did not have necessary audit procedures performed in the audit process. In this case, CPA express an audit opinion, and the opinion was not a fair reflection of the company’s real operating conditions. Because the audit failure must accompany the audited entity financial fraud and financial fraud, then once the CPA in the audit process is not in accordance with auditing standards, and ultimately having an inappropriate audit opinion audit failure cause, will give accounting firms, CPAs and investment bring huge losses. Therefore research CPA firm audit failure problem has important practical significance.This paper uses a standardized research methodology combines with literature research, first on the basis of existing research, elaborated the basic audit failure and related theories, including the definition of audit failures, relationship between audit failures and audit risk, the relationship between audit failures and financial fraud and audit failures impact. Then combined with the specific way of Lianhuaweijing financial fraud, I make a detailed analysis and study of the Asia-Pacific accounting firms and registered the audit problems, summed up the CPA firms’auditing failure reason, to reduce audit risk of CPA audit work and avoid audit failure. I hope to create a favorable audit environment, to improve the CPA audit quality and reduce the purpose of audit failures. I made specific suggestions on improving the accounting levels and improving audit quality.Finally I get the following conclusions:As a CPA, if you want to reduce audit risk to avoid audit failure, you must adhere to the principles of the CPA cautious、improve their professional ethics and skill levels,、perform audit procedures work in the auditing, in order to ensure audit quality.