Study On Audit Failure Of Listed Companies Of China

With the rapid development of Chinese capital market,more and more people have begun to join the ranks of investors and the financial report of enterprises have received more and more attention.As the most important part of the national economy,the manufacturing industry has always been the focus of people's attention.By 2018,the proportion of manufacturing enterprises in China's listed companies has exceeded 60%,enterprises in the computer communication and other electronic equipment manufacturing industry account for a relatively high number of listed companies in the manufacturing industry,and the probability of financial statement problems of them is also higher.And this kind of enterprise often belongs to the high and new technology industry supported by governmrnt,which is an important link in the process of our country's economic transformation.So this article will select Lixin's audit failure case of Geeya Technology which belong to computer communications and other electronic equipment manufacturing technology,combining with the relevant theoretical knowledge,to figure out the reason why lixin failed and discusse how to improve the audit work in this industry,in order to help this kind of enterprises audit can effectively reduce the audit risk,to ensure the orderly development of economic market.This paper mainly uses case analysis to discuss the audit failure case of Geeya Technology.In the process of in-depth analysis of the methods of financial fraud of Geeya Technology Co and the mistakes in the audit process of Lixin.Through the research,it is found that Lixin's audit failure is caused by internal and external reasons: defects in the audit quality control system,improper audit procedure design and execution,and loss of audit independence;The unhealthy competition of audit market,the intensity of supervision and punishment is not enough,the internal governance mechanism of the audited-unit is not perfect.Finally,in view of the above analysis,the author puts forward the measures to prevent audit failure: establish more professional and unified audit standards within the firm,and comprehensively identify audit risks and implement effective audit procedures in the audit process;Strengthen the supervision and punishment of relevant departments outside the firm,and improve the accounting standards and systems of the industry.The practical significance of this paper is to comb the computer communication,and other electronic equipment manufacturing enterprise audit the main risk points,facilitate in carrying out audit services,certified public accountants to audit resources,under the condition of limited time more quickly identify and assess audit risks,put more effort into in areas prone to fraud,the implementation of appropriate audit procedures,thus to improve the audit efficiency.