Study On The Audit Failure Of RH Certified Public Accountants

With the continuous development of the capital market,competition among listed companies has gradually increased,and some companies have used financial fraud to win the trust of the public.Certified public accountants should have been the last warning line to strictly guard against misreporting in the financial and non-financial information covered by the financial statements of listed companies.However,in recent years,there have been numerous audit failures in my country,which have seriously affected the development of the audit industry.RH Accounting Firm,one of the eight major domestic capital firms in my country,is also deeply mired in the credit crisis.Therefore,taking the audit failure cases of RH as the research object,analyzing the causes of its audit failures and drawing enlightenment can help improve the practice quality of the entire audit industry.This article first sorts out and evaluates the literature on audit failure,causes of audit failure,and prevention research by domestic and foreign scholars,and understands its research progress and current status,which lays the foundation for subsequent research in this article.Secondly,the relevant concepts and theories used in this article are defined and briefly analyzed to provide the corresponding theoretical basis for the subsequent analysis of audit failure cases.Thirdly,this article organizes and analyzes the audit failure profile of RH Institute,and on this basis,conducts a review of the three audit failure cases of the institute:Huaze Cobalt Nickel,Zhenlong Specialty Products and Asia Pacific Industrial Audit Failure Case.Then,through the above three audit failure cases,a detailed analysis of the causes of the audit failure of RH,from the level of certified public accountants,accounting firms,audited units and industry supervision level,have found many factors that lead to audit failure.Finally,for the causes of RH audit failure,combined with audit standards,quality control standards and company laws and other laws and regulations,we summarized the enlightenment from the above causes of audit failure,followed the four levels of cause analysis to put forward suggestions to improve audit quality and prevent audit failure And measures.