Case Study On Backdoor Listing Audit Failture Of Reanda To Jiuhao Group

The backdoor listing is more convenient and less time cost than the IPO listing process,and has won many favored listed companies with urgent financing needs.In recent years,the backdoor listing of reorganization of Chinese enterprises active,the backdoor listing auditi business that CPA faces is increasing,including the cases of backdoor to achieve backdoor conditions,obtain higher shares of financial fraud and CPA has audit failed,seriously impact on the CPA industry's reputation and credibility.In-depth analysis of the reasons for the failure of the backdoor listing audit,find the inspiration and countermeasures to prevent the failure of the backdoor listing audit has become the research focus of CPA industry.Firstly this paper summarizes and analyzes the research findings related to the audit failure of backdoor listing at home and abroad,and makes a discussion on how to define audit failture.After making a clearly selection that researching on the audit failture of backdoor listing according to the concept of process failure,applies the risk-based audit theory and individual behavior theory to theoretical analyze the failure of the backdoor listing audit of certified public accountants.Then reviewing the case of Backdoor Listing audit failture of Zhejiang Jiuhao Group,analyzing the causes of backdoor listing audit failure of Reanda accounting firm to Jiuhao Group from the firm and the CPA,the external supervision level: Reanda and its CPAs accepted the backdoor listing audit undertake unjust attitude,failed to fully understand the trial by the unit and its environment to fully assess the risk of misstatement at the risk assessment phase,implemented audit procedures at the risk response stage not properly,lack of professional suspicion and professional caution,the impementation of quality control of accounting firms is not strict.Relevant laws and regulations of the external regulatory environment are not perfect,the industry lacks supervision and punishment is low.The external regulatory reasons including the laws and regulations are not perfect,lack of supervision and punishment of industry is low.Finally advising Reanda accounting form on preventing the failure of backdoor listing audits: cautious in undertaking backdoor listingaudits,fully understanding the backer and its environment to accurately identify and assess the potential risks of misstatement,designing and implementing audit procedures,and always maintain professional supervision and caution,accounting firms should strengthen the business quality control system.External regulatory agencies should improve the regulations related to the legal liability of CPAs,increase the efforts of industry supervision and punishment.