Study On Audit Failure Of Gem Listed Companies

By the end of 2018,a total of 739 enterprises have been listed on the GEM,accounting for about 20% of the total number of listed companies,with a total market value of 4.6 trillion yuan.The GEM has become an indispensable part of the multi-level capital market.In recent years,frequent GEM listed companies audit failure case.On the one hand,the certified public accountant industry credibility questioned make investors by heavy losses.On the other hand,losing confidence in the growth enterprise market investment is not conducive to the healthy development of the GEM in China.Due to the fact that Geeya technology have a long involved in large amounts,and it is very typical of the GEM listed companies audit failure case.Therefore,this paper selects the case of Shu Lun Pan certified public accountants audit and Geeya technology,and analyzes the audit failure of GEM listed companies,this paper finds out the audit failure is mainly related to certified public accountants and accounting firms,and puts forward corresponding Suggestions,which has certain practical significance to promote the healthy development of GEM.Paper first introduces the research background,research purpose and research significance,and then combing analysis of domestic and foreign related research as a foundation for related research in this paper.From the GEM audit risk,factors and results leading to audit failure,the securities and futures commission of administrative punishment and the Geeya technology case studies four aspects were summarized.At the same time,the paper expounds the research content,research framework and research methods.Then according to the principal-agent theory,information asymmetry theory and audit conflict theory,the audit failure of GEM listed companies is studied.Due to the prominent problem of audit failure of GEM listed companies,it is concentrated in some firms and has more serious impact.Therefore,this paper combines the characteristics of GEM listed companies to conduct data analysis and summary of the reasons for the failure during the audit.It is found that there are three main reasons for the audit failure of GEM listed companies.First,some certified public accountants lack audit procedures;Second,the GEM company's owncharacteristics;Third,external supervision and punishment are less severe.Descriptive statistics and case analysis,this article users the audit failure case to carry on the brief introduction and review by analyzing the Geeya technology fictional prepaid accounts,inflated revenue and net profit and fictitious monetary fund three main financial fraud means,and the securities and futures commission to Shu Lun Pan certified public accountants and Geeya technology administrative punishment book.Three aspects analyze the causes of audit failure that are separately from the certified public accountants and public accounting firms,the GEM listed company and regulatory environment.Based on the analysis of the reasons for the aforementioned audit failure,this paper puts forward corresponding suggestions from the perspectives of certified public accountants and accounting firms,GEM listed companies and regulatory environment.From the perspective of certified public accountants and accounting firms,they should improve the level of risk control,strictly implement audit procedures,establish an audit quality control system and improve the professional competence of auditors.GEM listed companies should improve the corporate governance structure and strengthen the internal control system.From the perspective of supervision environment,we should strengthen industry supervision and external restriction,improve laws and regulations and increase civil compensation.