Case Analysis Of Lixin Accounting Firm's Failure To Audit Chaohua Science And Technology

With the rapid development of China's economy,the design of the intelligent control system of the three-dimensional parking lot is becoming more and more mature in the securities market.However,many large-scale enterprises fail to audit frequently.Some enterprises fail to truthfully reflect the real business situation of the enterprise according to the relevant requirements of the accounting standards.The accounting office fails to play an effective role in supervision,and issues an audit that is inconsistent with the real financial situation of the enterprise Opinion,there are audit failure cases such as Yinguangxia and wanfushengke,which have a great negative impact on the whole accounting firm industry.In order to further standardize the development order of the capital market,we must deeply analyze the problems and causes of audit failure cases,and take corresponding measures to prevent the risk of audit failure.This paper is of great practical significance to the research on the audit failure cases of Chaohua science and Technology Co.,Ltd.,which can not only help the auditors to consider the main influencing factors of audit failure more comprehensively in the audit process,but also deeply understand the main problems existing in the audit process,learn from the experience and lessons of audit failure,so as to help the auditors Audit work provides suggestions for improvement,so as to effectively reduce the possibility of audit failure.Based on the specific situation,causes and consequences of the audit failure cases,this paper discusses the preventive measures of audit failure from five aspects.In the introduction part,the background of audit failure and the significance of the research are briefly described,and the research status at home and abroad is combed from three aspects: the definition of audit failure,the causes of audit failure and the countermeasures to prevent audit failure,and then the research ideas and research methods of this study are put forward.The second part elaborates the definition and main characteristics of audit failure,analyzes the main causes of audit failure,and analyzes the impact of audit failure.In the end,it puts forward the main theories of this paper,such as principal-agent theory,information asymmetry theory,audit conflict theory.The third part analyzes the case of audit failure of Chaohua technology by Lixin Accounting firm,and reviews the case of audit failure of Chaohua technology.It is pointed out that the main financial fraud means of Chaohua technology include fictitious delivery order and weighing order,fake purchase and sale contract,false information provided in audit interview,false confirmation of waste revenue,etc.it is expounded that Lixin Accounting firm has not fully implemented inquiry,investigation procedure,deviation in risk identification and evaluation,internal control and control test in the audit process There are five aspects of concrete performance: trial procedure,failure to effectively implement the analysis and review procedure and issue improper audit report.The fourth part analyzes the main reasons for the failure of Lixin Accounting firm's audit of Chaohua technology,and finds that the lack of independence of certified public accountants,the lack of professional doubt of Certified Public Accountants on abnormal financial data,the lack of professional ability of certified public accountants and the insufficient implementation of risk oriented audit concept.In the aspect of accounting firms,there are some reasons,such as insufficient ability of risk identification,defects in internal control and imperfect audit quality control.From the perspective of the audited units,including the imperfect internal control system,the irregular financial information disclosure,the strong concealment of waste sales fraud means,and the strong fraud motivation caused by low profits.From the aspect of external audit supervision,there are many reasons,such as the inadequate supervision of CPA industry,the asymmetry of illegal cost and income,and the imperfection of industry laws and regulations.The fifth part sums up the conclusion of audit failure of Chaohua science and Technology Co.,Ltd.and draws some enlightenment: first,improving the independence and professional level of Certified Public Accountants is the core to avoid audit failure;second,improving the audit quality control system of accounting firms is the basis to avoid audit failure;third,optimizing the internal control system and governance of the audited units Structure is the fundamental to avoid audit failure;fourthly,strengthening the supervision of audit industry is the guarantee to avoid audit failure.