Research On The Governance Of Audit Failure In The Context Of Supply-side Reform

As China's economy grows and the market gradually prospers,the concept of the importance of audit quality has gradually infiltrated the minds of the public,and audit reports have become increasingly important.In light of this,the emergence of an independent auditing industry for certified public accountants appears to be of the utmost importance.This can deepen the ownership of the company's overall information,as well as better control of corporate managers and related information.In the investment and decision-making behaviors of enterprises,accounting information plays a vital function,but in actual operation,CPAs want to ensure the quality and accuracy of accounting information,but it is not as easy as imagined,based on various factors,the phenomenon of audit failure in the capital market frequently appear.The endless emergence of such phenomena has caused the CPA's integrity and professional ethics to waver in the minds of the public and even suffered suspicion.In addition,the public is also skeptical of the authenticity of the financial statements audited by certified public accountants.The emergence of this series of problems is very unfavorable to the relationship between the public and accounting firms,and even produces negative effects.At the eleventh meeting of the Central Financial Leadership Group held in November2015,General Secretary Xi Jinping stated that “we must strengthen the “supply-side structural reform” and increase the quality and efficiency of the supply system while appropriately expanding aggregate demand.Strengthen the power of sustained economic growth,and promote the overall improvement of our country's social productivity level.”The structural reform on the supply side is an effective management policy proposed by Chinese managers in the face of the new economic normalization and the new era that followed.At the same time,it can provide guidance for the deepening of structural reforms and the deployment of economic structures.It has become the "pathfinder" for future economic development and will eventually have a long-term impact on China's enterprises.As a typical producer service industry,accounting firms are providers of audit services.In the context of supply-side reforms,accounting firms need to provide high-quality and highly efficient audit services,which in turn promotes the development of the audit industry.This article uses Beijing Xinghua Certified Public Accountants as the case study object for the audit failure of Xintai Electric,focusing on the causes of the failure of the audit by Beijing Xinghua,and providing targeted countermeasures to prevent audit failure,aiming at reducing and preventing the accountants' affairs.The audit failed to provide some help.This article uses a combination of literature analysis and case studies to illustrate and analyze the topics in five areas.The research idea of this article is based on the background and guiding significance of the research questions,summarizing the relevant research results of domestic and foreign scholars,and expounding the related theories of financial fraud and audit failure and the status quo of audit failure in the CPA industry and proposing supply reforms.Against the backdrop of strengthening the significance of audit failure governance;the article selected Beijing Xinghua Certified Public Accountants for the failure of the audit of Xintai Electric,analyzed the fraud countermeasures of Xintai Electric Company and the problems in the audit process of Xingtai Electric Co.,Ltd.in detail.The reason for the failure of the audit by Beijing Xinghua was put forward,and the countermeasures to prevent the failure of the audit to meet the reform requirements of the supply side were put forward.