Analysis On Audit Failure Of Accounting Firm

At present,China is the world's second largest economic entity,and more and more companies are growing up by intervening in the capital market,but at the same time,various revealed audit failure cases have attracted great attention and concentration.2016,the SFC continued to maintain high pressure on various types of illegal activities and made 218 decisions on administrative penalty.The number of administrative penalty decisions and the amount of fines reached record highs,the number of the market ban also reached historical peak.True,accurate and complete information disclosure is the important foundation of healthy capital market,accounting information plays a very key role for investment decision-making,so CPA audit needs to assume the role of "gatekeeper" in capital market.However,the frequent failure of CPA audit has made the public question the professional conduct of CPA profession,and also has a great distrust on the financial report of listed companies.This paper takes the Xin Tai Electric Co.LTD.as an example to analyze the audit failure of IPO and the annual report,and analyzes the reasons for the failure of two consecutive audits of Beijing Xinghua accounting firms from the aspects of Xin Tai Electric fraud means,Xin Tai Electric management structure,professional competence of CPA firms and the independence of CPA firms.Research findings,in this audit failure case,audit failure mainly stems from the lack of professional competence and independence of CPA firms.On the basis of the above data,continue to study the economic consequences of audit failure,and found that the penalties of regulators did not bring economic benefits to its impact.Finally,the paper puts forward some suggestions and countermeasures for the research results.This article is divided into five parts: the first part is the introduction,mainly introduced the research background and significance of the article,and the research ideas and the basic research methods used.The second part is about audit failure and IPO audit related theory summary;the third part introduces the case of Beijing Xinghua accounting firms audit failure;Part Fouranalyzes the reasons of the audit failure of Beijing Xinghua accounting firms;The last part analyzes the economic consequences of audit failure.Part VI,through the analysis of the preceding article,This paper puts forward some feasible suggestions on preventing audit failure of CPA firms.