Research On The Reasons And Countermeasures Of Certified Public Accountant Audit Failure

Since the restoration of the CPA system in 1981,it has been 37 years.During this period,with the continuous improvement and development of the market economy and the prosperity of the capital market,CPA auditing has gradually gained the attention of relevant departments as an indispensable part of the market mechanism,and it has also developed rapidly.It can be said that the effectiveness of CPA auditing in maintaining market economic order and promoting the operation of the market economy is very important,so the community has become more recognized and trusted.But at the same time,the exposed financial fraud incidents are endless and repeated.After experiencing the failure of the CPA audit series,the quality of accounting information of listed companies has begun to attract widespread attention from regulators and investors.At the same time,they have raised unprecedented doubts about the audit quality,the public's recognition of the CPA profession has become thin and thin.Under this circumstance,it is a top priority to standardize the audit market and improve the audit quality to meet the expectations and needs of the public.Therefore,the research in this paper has certain value and significance.Based on the existing research,this paper uses principal-agent theory,rational "economic man" theory and audit conflict theory as the theoretical basis,using the combination of theory and case analysis,literature research method and inductive analysis method,and taking J company as the research object,it carried out a more in-depth analysis and discussion on the reasons for the failure of CPA audit,and put forward corresponding preventive measures based on the reasons for failure.The research in this paper believes that the reasons for the failure of CPA audit by JPA are as follows:first,the lack of independence of CPAs;second,the CPA has not maintained the professional suspicion;third,the CPA risk assessment process is inadequate;fourth,accounting firms attach importance to business recruitment and light quality control;fifth,there are drawbacks in the quality control of accounting firms.Based on the above findings,this paper believes that in order to effectively prevent the audit failure of CPAs,the following measures are needed: the main means to prevent audit failures is to continuously strengthen the independence of CPAs,maintain a high degree of professional cautious attitude and improve risk-oriented awareness;The important measure is that the accounting firm establishes a "quality"-oriented culture and strengthens the quality control construction of accounting firms.This paper hopes to discuss the case of J company's audit failure,deepen the understanding and understanding of audit failure,and provide some reference and suggestions for promoting the healthy long-term development of China's CPA industry.