Multiple Case Studies On Backdoor Listing Audit Failures

With the development of backdoor listing,the number of accounting firms to undertake the audit business of backdoor listing increases gradually,and the audit failure of backdoor listing appear.Among the cases of audit failure of backdoor listing,there are cases of falsely increasing assets and income to achieve backdoor listing,fraud performance commitment to achieve backdoor listing,and cases of concealing transactions between affiliated parties and non-affiliated parties to transfer assets of listed companies after backdoor listing.These audit failures of backdoor listing have a serious negative impact on the accounting affairs and the reputation and credibility of the CPA industry.It is of great significance for accounting firms and CPA industry to study audit failure of backdoor listing and put forward corresponding countermeasures.Firstly,this paper reviews the related research results of audit failure of backdoor listing at domestic and abroad,and analyzes the related concepts and theoretical basis of backdoor listing.The related concepts of backdoor listing include the definition of backdoor listing audit failure,the difference between backdoor listing audit and IPO listing audit,and the characteristics of backdoor listing audit.The difference between backdoor listing audit and IPO audit is that the operation mode of backdoor listing increases the audit risk,which makes the audit risk of backdoor listing complex and special.The theoretical basis of backdoor listing includes fraud triangle theory,information asymmetry theory and modern risk oriented audit theory.Secondly,this paper selects three cases of audit failure of backdoor listing,analyzes the fraud behaviors,fraud motivations and the reasons of audit failure of accounting firms.This paper summarizes the reasons of audit failure of backdoor listing and puts forward corresponding countermeasures for accounting firms,certified public accountants and relevant regulatory departments.The reasons for the failure of audits by accounting firms and certified public accountants are as follows: the accounting firm has not maintained the independence of the audit,the certified public accountant has not maintained a focus on professional suspicion,the certified public accountant has not valued and implemented fraud risk assessments,the auditors have not implemented a standardized audit Procedures,and the accounting firm did not implement a good business quality control review.The reason for external supervision is that relevant regulatory departments have insufficient supervision on accounting firms and backdoor listed companies.To prevent the audit failure of backdoor listing,the accounting firms and certified public accountants should improve the independence of audit,pay attention to the abnormal matters in the audit business and professional doubt,attach importance to and implement appropriate risk assessment,implement targeted audit procedures and strengthen business quality control reviews.Relevant regulatory agencies should strengthen the supervision of accounting firms,certified public accountants and backdoor listed companies.Finally,the author draws the conclusion and shortage of backdoor listing audit failure.The audit failure of backdoor listing has both commonness and individuality.To prevent the audit failure of backdoor listing requires the joint efforts of accounting firms and regulatory departments...