Research On Factors And Prevention Of CPA Audit Failure

With the rapid development of capital market in our country,as the gatekeeper of capital market,certified public accountants in maintaining the socialist economic market order has made great contribution in the past two years.However,in the past two years,the financial fraud cases of listed companies(represented by KDX,Greenland,Yabaite)broke out one after another.The accounting firms were punished by China Securities Regulatory Commission(CSRC)for issuing improper audit opinions.This has led to a major blow to the image of the CPA industry and the public's trust in CPA has fallen to a low point.The auditors put forward that they have tried their best to do the annual report audit of listed companies under the condition of limited time cost and limited human resources and capital.Therefore,they feel wronged by the criticism from the public and the punishment from the CSRC.Audit failure not only makes the accounting firm suffer from the double blow of economy and reputation,but also disturbs the normal economic order of the society and harms the interests of relevant investors.Therefore,the problem of audit failure has caused many experts and scholars to analyze and study the characteristics of the causes of failure from various angles,aiming to put forward effective Suggestions to prevent the occurrence of audit failure cases.In view of the above phenomenon,this paper puts forward the following two questions: what is the cause of audit failure from the perspective of the characteristics of certified public accountants and firms? How to avoid the phenomenon that CPA leads to audit failure in the audit process.This paper adopts the method of literature review and case analysis.First literature review is conducted.Secondly,based on reading the literature and combining with the relevant theoretical knowledge of auditing,this paper makes a specific analysis of the audit failure of Zhong Hua firm from two aspects: the audit characteristics of certified public accountants and the audit characteristics of the firm.Finally,in view of the above analysis,the author puts forward effective policy Suggestions.This paper mainly has two aspects of innovation: in the perspective of research,the existing audit failure research tends to carry out descriptive statistical analysis of the CSRC's penalty announcement,and this paper based on the existing research combined with specific failure case analysis.In terms of research content,the existing research tends to analysis from the macro perspective of the regulatory authorities.This paper analyzes the causes of audit failure from the perspective of CPA's failure in diligence and responsibility in the audit process,and puts forward targeted Suggestions,which has a strong practical significance.