Research On Audit Failure Case Of Geeya Technology

With the rapid development of China's economy and the establishment and maturity of the capital market,new business and settlement modes have been continuously introduced,which makes it more difficult for CPAs and raises the risk factor for audit work.Auditing,especially external auditing,plays a key role in dealing with information asymmetry.If the quality of auditing can not be guaranteed,it will interfere with China's economic order and the choice of investors' investment direction,and even hinder the long-term development of China's auditing industry.In addition,it also makes the listed companies in the process of information disclosure problems and shortcomings more obvious,not conducive to the normal operation of regulatory bodies.Therefore,how to better regulate the audit market has become a topic worthy of study.Among the numerous failure cases of auditing in 2014,the case of Lixin Accounting Firm deserves the most attention in the industry.There are two factors: First,the failure case of Jinya Science and Technology Audit is a typical example of audit failure of listed companies on GEM in recent years,and the failure case of Fellowship Jinya Science and Technology Audit promotes the GEM market.The healthy development has a certain guiding significance and reference value.Second,Lixin Accounting Firm is one of the most important accounting firms in China,regardless of business ability,company size and quality control,which can reflect the comprehensive level and good development trend of China's accounting firms.In the middle of the year,the CSRC punished the accounting firms in this incident,we can see that there are still some inadequacies in the audit quality work of the accounting firms.Through in-depth study on the audit quality work of Lixin accounting firms,we can form a form for the future development of domestic accounting firms.Definite inspiration and positive influence.Through summing up a series of previous failure studies in auditing work,this paper initiates an in-depth analysis of the failure cases of Jinya Science and Technology,thus mastering the fraudulent means and characteristics of Jinya Science and Technology,and then from the auditors,auditing institutions,auditees and external environment to analyze the causes of audit errors.At last,combining with the professional theory of audit quality,this paperputs forward some effective suggestions to avoid the recurrence of mistakes in the design work.This paper focuses on the auditors,institutions,the auditees and regulatory bodies four aspects of effective countermeasures to improve the risk prevention mechanism: to grasp the basic line of the future development of the audit industry,improve risk awareness;establish a risk prevention mechanism,strengthen the sense of responsibility,optimize the audit process;strengthen internal management;Improve the quality control system,improve the overall quality from the audit staff;optimize and adjust the ownership structure,improve the development strategy,improve the operational risk prevention coefficient;avoid vicious competition in the same industry,optimize the audit market competition environment,strengthen internal supervision.