Case Study Of Dahua Institute's Audit Failure Of Jiadian Shares From The Perspective Of Risk Prevention

In the era of rapid development of information,auditing cases of accounting firms have frequently occurred.Among the many administrative punishment cases issued by the CSRC in recent years.Dahua's failure to audit Jiadian's shares is particularly noticeable.There are obvious risks and omissions in the specific audit process.According to the risk-oriented auditing theory,tracking down the reasons for its audit failure and summing up the experience and lessons are of important practical significance to alert counterparts.This research analyzes the case in depth from the perspective of risk prevention,and uses the risk-oriented auditing theory to establish the audit risk model,major misstatement risk model,and check risk model of the Jiadian Shares case.On this basis,it analyzes issues such as the failure to perform the procedures for checking operating cost carry-over data,the procedures for self-developed cost accounting information systems.From the perspective,put forward countermeasures such as strictly implementing relevant audit procedures.The results of this research have established an objective risk assessment system for Dahua Certified Public Accountants and provided an effective risk prevention plan.The innovation of this study is to combine the failure cases of Jiadian Co.,Ltd.with auditing related models,systematic research and analysis,and put forward the major misstatement risk points and inspection risk points in the audit process of Dahua Institute.Existing problems urged Dahua to improve its current risk prevention plan,ensure the firm's continued and healthy business development,and continuously improve its overall strength.