Analysis Of The Causes Of Audit Failure In Zhonglei CPAs’ Failure As An Example

With the vigorous development of the securities market in our country,the growing number of listed companies in our country is gradually establish and perfect the capital market,make the social public investors are paying more and more attention to the quality of accounting information,therefore the auditing opinions of certified public accountants audit provide people’s attention.But,our country market economy the characteristics of the primary stage Early began to gradually appear,with the development of capital market the rapid growth of the number of listed companies,the company quality is good and bad are intermingled,many inferior company circle money into capital market,make the public investors suffered huge economic losses.As to prevent the bad company disrupted the market order of a very important line of defence,certified public accountants audit is due to keep up with the pace of market development and frequent audit failure.Audit opinions are usually in a certain extent can provide some references for the decision-making of the financial information users,the auditing opinions of false will encourage capital market money,cheat money,cause huge economic losses to investors,seriously disturb the order of the socialist market economy.Certified public accountants audit failure,therefore,is to hinder the healthy development of capital markets at the same time,also greatly damage the accounting and auditing profession status and image in the eyes of the public.In this paper,method of study:(1)system analysis methodMainly through the review of relevant literature review at home and abroad,an overview of the certified public accountants audit failure and its related concepts,on the basis of questions,analyze and solve problems of pattern of full system analysis the cause of certified public accountants audit failure.(2)the case analysisThrough a concrete analysis of a typical audit failure case,sums up the reasons of audit failure,put forward the corresponding preventive measures.This paper selected the Chinese fu-sheng wan lei certified public accountants audit failure cases as the research object,through the analysis of fu-sheng wan branch in order to successfully listed by fraudulent means,gradually come to the conclusion that lei in the accounting firm of certified public accountant in the audit process of the mistakes made by,and then analyze the reasons of audit failure.This paper consists of five parts.First chapter is introduction,including research background,purpose and significance of this article,literature review,this paper innovation points and research ideas and methods.The second chapter is summary of relevant theories,mainly introduces the principal-agent theory,"rational economic man" hypothesis.The third chapter is case introduction and the analysis of fraud means,first of all introduced the lei in the accounting firm and fu-sheng wan division of the company’s basic situation,and then introduces briefly process of fu-sheng wan branch financial fraud and analysis.The fourth chapter is the case of a detailed analysis of lei accounting firm audit failure reasons.Process of fraud,in the family through the analysis of fu-sheng wan lei certified public accountants audit failure reason mainly includes three aspects: first,not the implementation of appropriate audit procedures;Second,failed to fully maintain the independence of the audit;Finally,the audit personnel quality and professional and technical level is not enough.The fifth chapter is conclusion and enlightenment,through the conclusion of this paper summarizes the paper,respectively from the choice of accounting firm,accounting firm supervision and audit personnel quality,these three aspects analysis of how to prevent the certified public accountants audit failure.By analyzing the fraud process and in the family fu-sheng wan lei accounting firm of certified public accountants audit process,the reasons of audit failure mainly includes three aspects: first,not the implementation of appropriate audit procedures;Second,failed to fully maintain the independence of the audit;Finally,the audit personnel quality and professional and technical level is not enough.Case enlightenment,respectively,from the choice of accounting firm,accounting firm supervision and audit personnel quality,these three aspects analysis of how to prevent the certified public accountants audit failure.