Study On Audit Failure Case Of The Great Wisdom

With the development of social economy and the Internet technology saw the emergence of many new industries,certified public accountants audit risk increases.Due to the social demand for accounting information,audit failure not only directly influences the survival and development of audit industry itself,has an impact on China's social and economic function,affects the accounting information user's decision-making behavior,but also exposes the illegal behavior of the listed company information disclosure and the lack of regulatory efficiency and strength.Among the audit failure cases happened in 2016,the case of Lixin certified public accountants and the Great Wisdom is worth our attention.There are two reasons: firstly,the Internet financial information services industry is an emerging industry which plays an important role in promoting the "Internet +" action plan and developing the Internet financial.So the study of the great wisdom audit failure case helps to guard against the industry's audit failure and promote the development of the Internet financial information services company;secondly,Lixin accountant ranked top on the business scale,professional quality and quality control in our country's certified public accountants,now that Lixin was disciplined by China Securities Regulatory Commission,which was the first time during 2010-2016,suggesting that problems still exist in its audit quality control system.Making a research on the problems existing in the audit of Lixin can inspire the healthy development of the accounting firm.On the basis of former scholars' research on audit quality and audit failure,this paper studied the wisdom of audit failure case,analyzed the characteristics of means of fraud of great wisdom,pointed out the fault of lixin in audit process,and then from the audit institutions,the auditees and external environment from three aspects,in-depth analysis of the causes of audit failure,at last proposed suggestions to prevent the audit failure in the Internet financial information services industry under the guidance of related theory such as internal governance theory and risk management theory.The suggestions are as follows: understand the characteristics of the industry,pay attention to high-risk subjects;strengthen internal management,perfect quality control system,improve the auditor's professional quality and professional quality;improve the ownership structure,strengthen corporate governance,adjust management strategy;boycott vicious competition,improve the audit market competition environment,strengthen supervision and punishment.