A Case Study On Audit Failure Of The NEEQ

The vigorous development of the NEEQ is an important symbol of China,s establishment of a multi-level capital market.With the continuous development of economy,capital activities are frequently traded and investors are paying more attention to the quality of accounting information.Therefore,the CPA,the executor of the financial statement audit of the public interest company,bears an vital responsibility for guarding the quality of accounting information.Since the release of the geographical restrictions of the NEEQ at the end of 2013,due to the rapid expansion of scale,financial fraud and audit failure of have frequently appeared.Audit failure affects the normal decision-making of investors,causing economic losses,seriously disrupting the order and imperiling the healthy development of the NEEQ market.Therefore,research on the failure of the audit of the NEEQ has practical needs and long-term significance.This paper combs and summarizes the research of the predecessors from three aspects:audit failure,audit quality and the NEEQ audit,and builds the theoretical basis.This paper adopts case study method,combined with the reality of audit for the NEEQ company,selects Yindu Media as the case study object,and analyzes the reasons for the audit failure of CPA by looking up the defects and problems in the audit process,and proposes corresponding safeguard measures.Through analysis and research,the paper finds that the reasons for the failure of the audit of the NEEQ include:(1)internal defects of accounting firms(2)lack of good professional ethics of auditors(3)high competitive pressure in auditing industry(4)weak external supervision,Insufficient deterrence.Therefore,this paper proposes countermeasures against audit failure from three levels:accounting firm,certified public accountant and external supervision.This paper is a test and development of existing research results,and to a certain extent is also a supplement to the existing research gaps in audit failure.It is hoped that the research results of this paper can enable accounting firms and audit practitioners to check for vacancies and timely reflect.Also,expect that the external regulatory environment can be changed and improved,thus integrating various forces,preventing audit failures,improving the quality of the audit of the NEEQ,and promoting the NEEQ market to develop healthily.