Research On The Reasons And Countermeasures Of The Audit Failure Of Certified Public Accountants

With the emergence and development of principal-agent relationship,the demand for audit is increasing.But in recent years,auditing failures have occurred frequently at home and abroad.Every year in China,accounting firms receive administrative penalties from the SFC,and many of them are the top accounting firms in the industry.The occurrence of audit failure cases not only damages the reputation of CPAs and accounting firms,but also brings huge losses to investors and hinders the steady and healthy development of capital market.Therefore,it is of great practical significance to study the causes of audit failure and put forward countermeasures and suggestions accordingly.This paper chooses the cases of Xinyongzhonghe and Dengyun Stock as the object of analysis,combs the audit workflow,and combines the information asymmetry theory,agency theory and rational economic man hypothesis to study the causes of audit failure in the audit process.The variation of principal-agent relationship,unreasonable salary mechanism and lax external supervision environment will indirectly affect the behavior of CPAs,thus affecting the quality of audit and causing audit failure.Therefore,this paper finally puts forward the countermeasures and suggestions to prevent audit failure from the two levels of audit subject and external supervision.From the perspective of auditors,CPAs should maintain a professional prudent attitude in the implementation of audit procedures;pay attention to the appropriateness and integrity of the implementation of audit procedures and the acquisition of audit evidence;CPA firms should attach importance to the audit results review system and establish a sound audit quality control mechanism.From the external supervision level,CIFIC should strengthen the education and supervision of audit practitioners;improve the salary mechanism,formulate reasonable fee standards;and strengthen the interpretation and application guidance of audit standards.