Discussion On Causes And Countermeasures Of Audit Failure Of Accounting Firms

At present,China's economy has made great progress,but the supervision of the capital market is not complete,and many problems have been exposed in the operation of the market.The audit will examine the financial statements of many companies.The responsibility of certified public accountants is to ensure that the financial information of enterprises is reasonable,and to discover and expose the fraud problems such as financial fraud and deliberate concealment of key financial information adopted by some companies for certain purposes.However,in recent years,accounting firms have been frequently punished by the CSRC,for example,in the early days of Blue Sky Shares,Yin Guang Sha and other audit failures.The occurrence of these events not only brings serious losses to investors and disturbs the market order,but also has a greater negative impact on the society.The auditing ability of accounting firms has become widely questioned.According to the public notice of punishment issued by the CSRC,as many as nine firms were punished in 2017 alone,with fines exceeding 31 million yuan.These accounting firms include Li An Da,Da Hua,Rui Hua,Xin Yong Zhong and other large firms that rank high in China.According to the penalty notice of relevant audit failures issued by the CSRC from2001 to 2019,this paper makes a statistical analysis of the current situation of audit failures in our country,and then makes a comparative analysis of profit manipulation methods through the two audit failure cases of Asia-Pacific in 2015 and Jiadian shares continuous in2013-2015,which shows that the actual operation methods are basically the same.Then it mainly discusses from the three angles ofcertified public accountants,accounting firms and certified public accountants and supervision of the CSRC,and analyzes the causes of audit failure cases according to relevant accounting standards and auditing business standards.Then,according to the analysis and summary of the causes of the above failures,some effective countermeasures and audit suggestions are put forward to improve the audit quality of listed companies in the future,prevent the occurrence of audit failures and defend the legal interests of market economy participants.The study of this article,through analyzing the audit failure cases,according to the existing accounting auditing standards,systematically summarizes the causes of audit failure,and puts forward corresponding methods and countermeasures to reduce audit failure.To provide reference for China's audit work under the current environment,thus improving the financial information of listed companies and the quality of corresponding audit work,avoiding the loss of interests of all parties involved in the market economy,safeguarding the protection of investors,and boosting the prosperous and healthy development of market economy of China.