A Case Study On The Audit Failure Of DH Accounting Firm

Today,with the rapid development of the economy and the incomplete market supervision in our country,more and more problems are exposed in the capital market.Many companies hide their key financial information and conduct financial fraud for various purposes.The auditing work of certified public accountants is to find and expose these problems in the process of auditing financial statements and provide reasonable guarantee for the financial information of the company.However,in recent years,since the events of Yinguangxia and Lantian Company,audit failures have occurred frequently in our country,which have brought many negative impacts to the society,such as investors suffering great loss,capital market running out of order,many accounting firms disciplined by CSRC.And the public also begin to question the professional ability of the accounting firms.In the year of 2017,more than six accounting firms have been punished by the CSRC,including large domestic firms such as Ruihua,Lixin,Shinewing and Lianda,with total fines exceeding 30 million yuan.Under this circumstance,accounting firms play an important role in uncovering fraud and maintaining economic order.Therefore,studying the causes of the audit failures and putting forward specific countermeasures are very helpful for accounting firms to improve their audit quality and reduce audit failures,which is of great importance for both accounting firms and society.This paper selects DH Accounting Firm as the study object,which was punished by CSRC in July,2018.And its continuous audit failure of Jia Dian Company from 2013 to 2015 is taken as the case for study.The first part of this paper is the introduction.It introduces the study background and significance under the circumstance of audit failures occurring frequently.Then it sorts out the related domestic and foreign literatures in recent years and summarizes the main ideas of the experts.Next it summarizes the study content and study methods of this paper,including the literature research method and the case analysis method.And it also contains the innovation points.The second part is the case description.It introduces the relevant information of DH Accounting Firm and Jia Dian Company.Then it gives a specific description of the audit failure event.The third part is the case analysis.Firstly,the concept and related theories of audit failure are introduced.Secondly,it summarizes the specific audit failure performance of DH Accounting Firm and analyzes the reasons for the audit failure.The fourth part is the countermeasure and the inspirations.It puts forward some targeted measures for DH accounting firm to prevent the audit failure.And it also proposes some inspirations about preventing audit failure for other accounting firms.