Analysis And Enlightenment Of *ST Sinopharm Audit Failure By Lixin Accounting Firm

With the rapid development of the capital market,the public has increasingly high requirements on the quality of accounting information.As an independent third party,accounting firms play an important role of verification and supervision,facilitating investors to understand the true financial information of the company and supervise the operators.However,the continuous audit failures have reduced the public's trust in accounting firms and certified public accountants,leading to a crisis of confidence.From Yinguangxia,Shenxianyuan,Wanfushengke,Xintai electric,Jinya technology,Wuyang construction and other events,successive audit failures have brought huge negative impact on the capital market,disrupted the normal order of the capital market,and reduced the enthusiasm of public investors.Therefore,how to objectively analyze the causes of audit failure and prevent the occurrence of audit failure is an urgent problem in the current accounting firm industry.This paper starts with the research background and significance,on the basis of the literature at home and abroad,summarizes the effects of audit quality research,the influence of audit failure reason,the influence of audit failure countermeasures research,and countermeasures for the application of the related research has carried on the literature review,the article put forward the content of research,the ideas of research and methods of research;Secondly,it introduces the concepts and theoretical basis related to audit failure.The identification of audit failure is divided into "process theory" and "outcome theory".This paper supports the "process theory" and lists the supporting reasons in turn.Then it analyzes the difference and connection between audit failure and operation failure and audit risk,and puts forward the characteristics of audit failure.Again,the people on both sides of the audit failure cases Lixin accounting firm and ~*ST characters are introduced and reviewed the case,according to the securities and futures commission announced the decision on administrative punishment,clarify case ~*ST characters financial fraud motive and means,the analysis of Lixin's improper behavior in the process of the audit and the CSRC of the punishment;Then,the reasons for the failure of ~*ST sinopharm audit by lixin are analyzed from four aspects,including the management of accounting firms: lack of audit independence,lack of risk assessment ability,and the poor implementation of quality review system.Audit project team business implementation level: audit procedures are not in place,insufficient attention to thefinancial fraud risk area,and the internal communication of the project team is not in place.Certified public accountants personal quality level: do not maintain the corresponding professional doubts,insufficient professional ability and other problems;External supervision:problems such as insufficient supervision efficiency and relatively light punishment by regulatory agencies;Finally,according to the above reasons,four aspects should be suggested,the accounting firm should continuously strengthen the risk assessment ability,improve the audit independence,and strictly implement the audit quality review system.The audit team should strengthen the execution of the audit procedures,focus on the fraud risk area,and strengthen the communication within the project team.In the process of auditing,certified public accountants should keep professional doubts and constantly improve their professional ability,External regulators should be more efficient and more punitive.