Research On Roots And Enlightenments From BDO China's Failure In Auditing Geeya Technology

With the rapid development of China's capital market,the operating performance of listed companies has become the focus of investors' attention,and the audit report disclosed by certified public accountants has become an important basis for investment decisions.However,audit failure cases have occurred from time to time due to various factors,which not only reduced the public credibility of certified public accountants,but also damaged the investment value of listed companies severely,and hit the public's investment confidence.Therefore,strengthening research on audit failure cases,revealing their root causes and hazards,and putting forward preventive measures and recommendations to protect the legitimate rights and interests of investors and maintain the development of China's capital market healthy and orderly have become one of the hotspots in academic research.This paper adopts a research method that combines literature research and case analysis.When summarizing domestic and foreign literature,it is divided into two aspects:the influencing factors of audit failure and the enlightenment suggestions of audit failure.Afterwards,an analysis of the failure of BDO China to audit Geeya technology.First,a brief overview of the basic situation of the two companies,followed by an analysis of Geeya Technology's financial status,audit status and fraud,and finally elaborated on the problems existing in BDO China's audit process and the penalties imposed on both parties.In the research on the roots and inspirations,the analysis is mainly from four perspectives.The first is the auditors:lack of independence,lack of professional competence,and lack of due diligence.Therefore,professional ethics should be strengthened,professional quality should be strengthened,and work should be done with due diligence;The second is the accounting firm:the quality control system is invalid and there is an audit collusion with the overall basic staff is highly mobile,so the quality system should be improved,the risk control level should be improved,and the quality of the auditors should be strengthened to deal with the loss of staff turnover;The third is the audited unit:untrue information disclosure,unbalanced governance structure and internal control.Therefore,the corporate governance structure should be optimized,internal control should be strengthened,and business strategy should be adjusted;Finally,the audit practice environment and regulatory agencies:poor audit practice environment,low cost of violations by enterprises,and weak government supervision.The enlightenment should be to suppress unhealthy competition,improve laws and regulations,strengthen the role of social supervision,and encourage the development of some short-selling institutions.