Research On Internal Control Auditing Failure Of The Listed Company

In recent years,the domestic and foreign listed corporation financial fraud cases are emerging,many cases involved a huge amount of money,they destroyed the order of the capital market and caused huge losses of investors.Internal control system's defect is an important reason which leading to the corporation's fraud,listed corporation internal control problem attract more and more attention by investors and regulators.Enterprise internal control is the key content of corporate governance,the reasonable and effective implementation of internal control can maximize the guarantee of the true and fair of financial reporting.In 2002 the United States issued Sarbanes Oxley,stipulate the CPA should audit the internal control of financial report.According to China's national conditions,in 2010 "internal control audit guidelines"was issued,the internal control of the audit system has been standardized,marking the beginning of China's internal control audit system.With the development of economy,the influence of the audit of certified public accountants to the capital market is more and more important.Investors generally rely on the audit report to confirm the authenticity of the performance of the listed corporation and the operating data.With the increasing of China's listed corporation financial fraud phenomenon,the public has also produced a doubt on the quality of the certified public accountant' report.The registered accountants have not due diligence and the situation of collusion with the listed corporation in the audit industry has brought a huge negative impact on the reputation.Internal control audit as a new audit business,its quality is critical to the survival of CPA industry.The audit of internal control of financial,from the side to ensure the authenticity of the financial report,if the internal control audit quality is not high,the CPA exist fraud audit,so the internal control audit lost its original meaning.China's internal control audit system implementation time is not long,how to prevent the CPA to conduct internal control audit fraud and improve the quality of internal control audit,domestic research is not much.Firstly,according to the domestic and foreign development status of internal control audit on audit failures,this article introduces the significance of internal control,followed by the introduction of the relevant theoretical knowledge of internal control audit,according to the definition of financial report audit,expounds audit of internal control failure,risk concept,then analyzes the internal control of our country internal control audit case,analyzes the causes of audit failure of the case,then according to the analysis of the problems in the case of internal control and audit present situation,summarizes the common cause of audit failure,finally puts forward countermeasures of audit failure from listing Corporation,accounting firms and the external environment.