Analysis On The Failure Of DZH Limited Audit By Lixin Accounting Firm

Since the reform and opening up,China's socialist market economic system has been gradually improved,and more and more attention has been paid to the importance of audit quality and reports.Through CPA audit,the relevant parties of an enterprise can fully understand the financial information of the enterprise and provide support for decision-making,making it increasingly important for CPA to independently audit the industry.In a market economy,however,the certified public accountants audit failure cases,the public began to the industry of certified public accountants professional ethics and ethics question,more and more enterprises violations punished by the China securities regulatory commission,participate in audit institutions are "pulled up the turnip out of the mud",to social and economic losses caused by,to a certain extent,leading to a decline in the auditing profession in public,the serious influence the reputation of the auditing profession,thus reduce the audit risk,audit to prevent failure is particularly important.Based on great wisdom case as the research object,this paper first expounds the audit failure definition,influence and relevant theory,then USES the literature analysis,case method,lixin certified public accountants audit wisdom company as an in-depth case study.In case analysis,firstly reviews the lixin accounting firm to audit process of Shanghai great wisdom,to analyze the manifestation of audit failure,then the lixin accounting firm wisdom company the reason of audit failure,mainly from the auditors,auditors and the audit environment three aspects specific analysis of the causes.Finally,it is concluded that lixin certified public accountants audit failure case enlightenment wisdom company: strengthen the auditors' professional competence,strengthen the audit management,strengthen the firm's quality control enforcement,improve the audit independence,improve the capital market law and so on.