Research On Audit Failure From The Perspective Of Process Quality Control

In recent years,the phenomenon of audit failure has occurred occasionally,especially with the continuous expansion of the enterprise and its business constantly enlarged territory.Particularly in this globalization,with the continuous flow of capital,doing audit work is very difficult,accompanied by audit problems.Although in recent years there have been a lot of audit failure incidents,many scholars have studied audit failure and put forward some effective Suggestions.However,with the appearance of new things and situations,new problems in audit are increasing.Therefore,how to strictly implement audit procedures and prevent audit failure under the new audit environment becomes extremely critical.Therefore,the audit failure is an age-old problem,but there's a real sense of reality in a new economic environment where we can re-discuss the reasons and preventive measures of audit failure.This paper analyzes the relationship between audit quality and audit failure by combing the literature on audit quality and audit failure,and combining the basic theories of individual behavior theory,rational economic man theory and principalagent theory.This paper sorts out the administrative punishments given by the CSRC to the accounting firms in the decade from 2008 to 2017,and analyzes the number of accounting firms that have been administratively punished,the reasons for being punished,and the relationship between process quality control and administrative penalties.In the case,it is believed that the punishment of the firm is largely due to the fact that the CPA has not paid attention to the quality control of the process and cannot guarantee the quality of the audit process,and thus obtained audit results that are inconsistent with the actual situation.This paper chooses the relatively representative of ShineWing and the audit failure of Dengyun Shares as a case study.From the different understandings of audit quality by three different subjects of CPA,users and regulatory authorities,to explain the reasons for the audit failure: First,the CPA did not strictly enforce the process quality control during the audit process.The quality of the audit process cannot be guaranteed.Second,users paid more attention to the quality of the audit results and ignored the importance of the quality of the audit process.Third,the regulatory authorities failed to provide a good regulatory environment to ensure that CPAs can effectively implement process quality control.Then,when making recommendations,the paper analyzes the proposed issues from three levels of CPAs and firms,audited entities,and regulatory authorities.,stressing that the quality control of the process should be strictly implemented,the implementation level of the audit procedures should be strengthened,and the quality of the audit process should be guaranteed.Only in this way can the quality of the audit results be guaranteed to a certain extent.Finally,the goal of preventing audit failure is achieved.If the quality of the audit process has been ensured,even if the quality of the audit results is not high,the firm and the CPA can still avoid liability in a certain degree,without facing litigation problems.Therefore,emphasizing process quality control has certain practical significance for preventing audit failure.The main contribution of this paper lies in the systematic analysis of the reasons and countermeasures of the audit failure from the perspective of process quality control,based on the different understandings of the audit quality of the three different subjects,namely CPA,users and regulatory authorities.So the perspective is relatively clear and unique.