Audit Failure Research Based On The CSRC Penalty Decision

In recent years,the listed company fraud incurred frequently.At the same time,the Certified Public Accountants,who are main supervisors,are frequently fail to find fraud and punished by the China Securities Regulatory Commission(hereinafter referred to as "CSRC")in imposing administrative penalty.The negative impact of audit failure not only disturbed the efficiency of capital market causing huge losses to investors,but also caused economic and reputational losses to the accounting firms and the Certified Public Accountants.The audit failure triggered heated debate among the theory and practice field over these years.Many scholars made researches on the expressions,characteristics,and reasons of audit failure.Their ultimate goal is putting forward some countermeasures to prevent audit failure from happening again.This paper analyzes the causes of audit failure by using a combination of theory and practices audit failure.It aims to give the accounting firms,the Certified Public Accountants and the Chinese Institute of Certified Public Accountants(hereinafter referred to as "CICPA")suggestions on improving their work to prevent audit failure.The condition of the Accounting firms and the Certified Public Accountants to be punished because of the audit failure,the specific problems existing in the audit process and the common features of audit failure from the specific content of penalty.The CSRC investigation report of Z accounting firm can be used to analysis direct and indirect causes of the audit failure from its process of investigation.And it can provide the foundation of forward countermeasures and suggestions.The full context is divided into six chapters.The first chapter is the introduction part,clarifying the meaning and purpose of this article.Then it introduces and evaluates the relevant research about audit failure and administrative penalty decision put forward by the domestic and foreign scholars.Next,it introduces the research contents that around the administrative punishment decisions and its methods.Besides,the innovation and limitations are expounded in this part.The second chapter is the definition of audit failure,and the conflict theory,information asymmetry theory combined with the audit and rational economic participant assumption,explaining the causes of audit failure in theory.The third chapter analyzes the current situation of audit failure in China,based on the specific content of CSRC's punishment.The fourth chapter analyzes the common characteristics of audit failure from CSRC punishment,and analyzes the possible causes of audit failure based on these characteristics.The fifth chapter is a specific case analysis,the case briefs in the first place,then respectively on the auditee and auditor of the situation to carry on the introduction and analysis,next to the cases of audit failure analysis of direct and indirect causations.The sixth chapter is the analyzing results of above chapters,aiming to figure out the suggestions with relevant facts to improve auditing works,and promote Certified Public Accountants auditing quality.