The Cases Enlightenment Based On The Failure Of Kanghua Agriculture Auditing

In the 1980 s,China's CPA industry recovered,then the size and business scope of the auditing were expanding.The establishment of capital market and continued reform of state-owned enterprises cause certified public accountants industry developing fast.In the supervision system of market economy,the certified public accountants audit has become an important part cannot be replaced.With the deepening of China's corporate governance and capital markets maturing,a series of financial reporting fraud cases outbreak and the audit failure case is disclosed.In these fraud listed companies,stunning,surprising that the agricultural sector seems to be fraud-prone "beds",many important cases are concentrated in the agricultural sector outbreak,such as Green-Land(Yunnan),Wan Fu Biotechnology(Hunan),and New Land fraud repeatedly exaggerated the extent of breaking the bottom line is the market,which brought a big negative impact to the certified public accountants industry.Based on a large number of references,this paper takes the audit of kanghua agricultural co.,ltd.as an example to study the causes of audit failure of accounting firms.First of all,the article defines the related concepts of "audit failure",and puts forward that "reasons" and"results" are two important elements of audit failure.It also points out that the occurrence of audit failure requires two conditions.On the one hand,the definition of audit failure should conform to the result elements,that is.the audit report fails to make a correct evaluation on whether the financial statements reflect the financial situation,the operating results and the cash flow situation,and gives the appropriate audit opinions.On the other hand,the definition of audit failure should conform to the cause of the cause,that is,the audit subject fails to follow the auditing standards,and there is a fraudulent and deliberate fraud in the process of auditing,and this kind of behavior should constitute a causal relationship with the inappropriate audit opinion.Subsequently,the article enumerates the reasons for audit failure of agricultural enterprises.Then,taking kanghua agricultural audit as an example,this paper expounds the financial fraud methods of kanghua agriculture and the specific facts of the audit failure of lixin accounting firm.Subsequently,the causes of audit failure in kanghua agricultural audit cases were analyzed with the help of risk-oriented audit.Finally,based on the audit case of kanghua agriculture,this paper discusses and studies the preventive mechanism of audit failure for agricultural enterprises on the level of CPA.