Study Of The Audit Failure Of Shanghai DZH

With the continuous development of China's economy and the increasingly completing of the Chinese capital market,users of financial statements have increasingly attached importance to the quality of accounting information of listed companies,and the requirements for audit quality have also increased.However,in recent years,the CSRC has repeatedly reported the administrative penalty decisions of listed companies and accounting firms.CPA have misled the company in the course of auditing.They failed to find the accounting company's inflated revenues,profits,and forged accounting materials.The audit report on misleading opinions will not only affect the investment behavior of the users of the report,bring economic losses,but also damage the credibility of accounting firm and the certified public accountant in the public mind and undermine the capital market order.In this context,I discuss the causes and harms of audit failures,summarize the characteristics of the failure of independent auditing of listed companies in China,analyze the reasons for failed audits,discuss measures to prevent audit failures,improve the quality control system of accounting firms,and reduce audit failures.The probability of occurrence and improvement of the quality of financial information of listed companies are particularly important.This article selected the audit failure cases of Shanghai DZH's 2013 financial statements by BDO China SHU LUN PAN Certified Public Accountants,and conducted the study of the listed company's CPA audit failure.The article first systematically elaborates the definition,causes and hazards of the CPA audit failure.Based on this,it summarizes the 37 failures of the CPA audit of the listed company by the China Securities Regulatory Commission.Then,based on the audit failure cases of Shanghai DZH company,which is representative of the Internet financial information service industry,the major misstatement risks of Shanghai DZH,the failure of CPA audit failures,and the causes of audit failures are analyzed.Finally,based on the comprehensive analysis of the causes of audit failure,it proposes countermeasures against the failure of the listed company's CPA audit.Through analysis,this article finds that the reasons for the audit failure of Shanghai DZH Company are the strategic and operational status,and the features of the Internet financial information service industry where Shanghai DZH company located.On the other hand,the insufficient level of certified public accountants' practice,the improper design and implementation of audit procedures and the lack of strict quality control of accounting firms are the direct causes of audit failure.Based on this,we put forward specific countermeasures and suggestions for improving the audit quality,including: improving the practicing level of certified public accountants(strictly observing professional ethics and improving professional competencies);designing and implementing audit procedures in a targeted manner(enhanced risk assessment procedures,strengthen the implementation of control tests,rational use of analytical procedures,focus on issues after the financial statements,standardize audit work papers;strengthen the quality control of accounting firms.The innovation of this article is to straighten out the concept definition,causes and harms of the failure of the listed company's CPA audit.And based on the analysis of the 37 CPA audit failure of the listed company during the ten years from 2008 to 2017,we analyse the representative company Shanghai DZH of the emerging industry-the Internet Financial Information Service industry,analyse the reasons for the failure of CPA audit and preventive measures.The inadequacy is that the disclosure of partial audit details of Shanghai DZH Company is not sufficient,and the analysis of the reasons for failed audit of listed companies is not comprehensive,and whether the proposed countermeasures is useful remains to be verified.