Analysis Of Certified Public Accountants Audit Failure

With the gradual development of China's socialist market economy,capital market is becoming more and more perfect,make people growing demand for auditing,is more emphasis on the authenticity of accounting information,the auditing reports issued by certified public accountants in the spotlight.Separated gradually as a result of the modern enterprise ownership and management,enterprise's actual investors do not participate in the daily management of enterprise,enterprise owners and managers,there are serious information asymmetry between in order to achieve the understanding of corporate financial information and the supervision of management personnel and independent auditing for certified public accountants industry arises at the historic moment.Certified public accountants audit is also related to the vital interests of the more and more people.Audit program is a certified public accountant in the audit process must be strictly implemented steps,but with the rapid development of economy,due to various factors such as time,cost,business ability,the influence of audit program implementation does not reach the designated position phenomenon has become increasingly serious,some of the certified public accountant in the audit process is usually carried out in accordance with the own methods,many audit implementation does not reach the designated position or maintain professional skepticism,therefore,when the quality of the certified public accountants audit services do not meet certain standards,auditing failure occurs.In recent years,China's securities market,the exposure of a series of audit failure events in the history of the social public to the accounting information quality has a strong mistrust,causing serious social impact,makes the reputation of the accounting firms and certified public accountants has received the unprecedented challenge and challenges.Based on audit conflict theory,principal-agent theory and information asymmetry theory as the foundation,adopts the method of theory analysis combined with case analysis of Yatai accounting firm audit Henan lianhua gourmet powder co.,LTD.(hereinafter referred to as Lianhua gourmet powder)by analyzing the reasons for failure,and puts forward Suggestions for the prevention of certified public accountants audit failure,in order to enhance risk prevention consciousness of certified public accountants,strengthening the construction of certified public accountants audit quality control system,improve the quality of the auditor's own practice,promote individual certified public accountants,certified public accountants industry as well as the healthydevelopment of the auditees.Case studies show that:(1)the CPA own quality defects are the direct cause of the failure of the audit;(2)the quality of certified public accountants professional construction is not perfect is the indirect reason of audit failure;(3)certified public accountants industry environment is the external factors affecting the quality of certified public accountants audit.The contribution of this paper lies in:(1)to enrich the theory of certified public accountants audit in our country,through the analysis of the typical case,this paper expounds the cause of certified public accountants audit failure,put forward the policy Suggestions and Revelations of the audit failure to prevent;(2)summarizes the causes of audit failure in the typical cases,the certified public accountants,certified public accountants,and puts forward some pertinent advice,regulators is helpful to perfect our country securities market audit supervision system,to improve the quality of accounting information of listed companies also have important meaning;(3)to the certified public accountants industry in our country related to provide reference for the formulation of laws and regulations.This paper will be divided into five parts: the first part is introduction,mainly introduces the research background and significance of this article,related research situation and research ideas and methods and the basic framework of this article;The second part is about the introduction to the theory of public accounting firms and certified public accountants audit failure.The third part introduces Yatai accounting firm audit of the specific conditions of the Lianhua gourmet powder case;The fourth part of Yatai accounting firm audit failure case for further analysis;The fifth part through the analysis of above this article conclusion,and puts forward feasible Suggestions for certified public accountants audit failure to prevent.