| At present,with the rapid development of China's economy and the establishment and maturity of the capital market,the supervision system of the market economy needs to be perfected.As an important part of it,the CPA industry in China has got a wide space for development.However,with the deepening of corporate governance in China,more and more cases of audit failure have been revealed.The failure of the audit not only causes the loss of the actual information used by the personnel,but also has a serious negative impact on the development of the market.The impact of audit failure has attracted wide attention all over the world.From the theoretical and practical circles,the discussions on audit failure emerge in an endless stream,and the countermeasures to avoid the audit failure have become the hot issues that need to be solved urgently.The reasons for the failure of the audit and the study of preventive measures are particularly necessary.Through the macro grasp in recent years and the corresponding CPA firm is to punish the case,further summarized the characteristics of failure cases of audit in China,and through detailed analysis of the recent exposure of the geeya case,in order to investigate the audit failure of components corresponding preventive system to strengthen China's capital market supervision and corporate governance.The introductory part introduces the background and significance of the research.It also makes a literature review from three aspects,namely,the definition of audit failure,the cause of audit failure and the countermeasures against audit failure.Besides,it also explains the research ideas and methods of the article.The second chapter introduces the definition and characteristics of audit failure,and then from the CPA firm,the CPA and the audited units and the overall external operation environment these four aspects to introduce the reasons of audit failure,and provides the theoretical basis of the study in the final stage,including audit conflict theory,principal-agent theory and the assumption of economic man.The third chapter selects Geeya Technology as a classic case of audit failure,mainly from the aspects of CPA firms,CPA,the actual audited units,and audit practice environment and regulatory aspects.It also points out the existing problems and the subsequent handling procedures of Geeya science and technology financial report,and expounds the performance of Lixin Accounting firm in the process of audit,such as the implementation of audit procedure is not in place,the cautious professional skepticism and the audit alternative procedure are not enough.In the fourth chapter,the reasons for the problems in the cases are analyzed.It is found that the independence of CPA audit,the lack of professional and technological capabilities,and the lack of necessary career skepticism in the audit process.From the aspect of Lixin Accounting firm,accounting firms failed to identify risks effectively,and failed to control the quality of audit reports,which provided a possibility for audit failure.More analysis showed that there was suspicion of audit collusion.In addition,the reporting information disclosure of the audited units is not standardized and the governance structure is imperfect,which also forms the reasonable conditions for the audit failure.From the external environment,the audit market competition is not standardized,the CPA industry related laws and regulations have low binding force and the government's supervision and management system is not perfect,which provides a hotbed for audit failure.In this paper,a series of problems found in the case are summarized and enlightened.First,the prudence and professional skepticism of certified public accountants are important measures to avoid the failure of audit.Secondly,the strict control of audit report quality is the most direct factor to prevent the failure of audit.Finally,the relevant departments should increase the supervision of the audit system of listed companies and prevent the failure of audit. |
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