On The Current Situation And Countermeasures Of Misconduct In Audit Procedures

In recent years,audit failure of accounting firms frequently occurred.Among them,Reanda accounting firm failed seven times in the past decade.Audit failure greatly weakens the trust of financial statement users to accounting firms,and damages the reputation of accounting firms.Audit failure also hinders the continuous and stable development of accounting firms,so the problem of audit failure needs to be resolved quickly.Accounting to the administrative punishment of the CSRC between the year of 2009 and 2018,it is found that the misconduct of audit procedures is one of the important reasons leading to the audit failure.Misconduct of audit procedures is that a accounting firm fails to obtain sufficient and appropriate audit evidence through the execution of the audit procedures,thereby the accounting firm can't publish appropriate audit opinion on the financial statements.At present,the research on the misconduct of audit procedures mostly is included in audit failure,and scholars usually underestimate the problems of audit procedures.The accounting firms also have not summarized the problems of audit procedures due to the constraints of time or energy,and learnt from the experience.Therefore,systematic research on the misconduct of audit procedures is urgently needed.This paper focuses on the study of misconduct in audit procedures.It aims to find out the common problems of audit procedures,and to explore the reasons of audit failure from a technical perspective.In the first chapter,this paper sorts out the research of misconduct in audit procedures at home and abroad,and clarifies the research content and research methods of the paper.In the second chapter,according to the administrative punishment of CSRC to accounting firms between the year of 2009 and 2018,this paper analyzes the basic situation and types of misconduct in audit procedures,which present the status quo of accounting firms.In the third chapter,different cases are selected from the penalty announcements to analyze the misconduct of audit procedure from risk assessment procedures and further audit procedures,and then analyzes the reasons for the misconduct of the audit process.In the fourth chapter,some recommendations are proposed.In the last chapter,it summarizes the innovation and limitations of the paper,and clarifies the direction of future research.Through the research,this paper finds that when accounting firms assessed the risk of companies,they often failed to investigate the industry status and operational risks of audited entity.They also failed to understand the internal control of the audited entity,and didn't assessment of fraud risk and special risk.There were few problems in the control test,but defects of control test are concentrated in the sales and collection cycle.All of the penalized accounting firms had misconduct of substantial procedures.Accounting firms usually didn't implement appropriate audit procedures to check the �occurrence� of the income and the �existence� of the assets.In view of the problems existing in the audit procedures,this paper puts forward relevant suggestions from the technical perspective firstly.Then this paper suggests to improve accounting firms' quality control system and optimize the external environment of audit.This paper is based on the administrative punishment of CSRC to accounting firms between the year of 2009 and 2018.It summarizes problems existing in the audit procedures of the penalized accounting firms,and proposes targeted countermeasures.This paper not only enriches the research of audit procedures,but also helps accounting firms to properly implement audit procedures,improve audit quality,and reduce audit failures.