A Research On Audit Failure And Prevention Of Certified Public Accountants Industry

China’s capital market has been developing and improving,but audit failures have still occurred from time to time,seriously endangering the order of market economy.With the development of information technology,the audit environment has changed.It is helpful to perfect the audit work of Certified Public Accountants and prevent audit failure by studying the reasons of audit failure and putting forward countermeasures to prevent audit failure based on information technology.This paper adopts literature research,normative analysis and case analysis on the reasons of audit failure.The author of this paper studied the audit failure cases which disclosed by China Securities Regulatory Commission from 2001 to 2019,then found that audit failure of the Certified Public Accountants presents following features: financial fraud;higher probability of audit failure in continuous or local audit cases;deficiency of necessary audit procedures.The main reasons for the audit failure include: the lack of necessary professional doubt;the insufficient implementation of audit procedures;the lack of independence of accounting firms;the formalism of the three-level review system;the weak industry supervision;the low cost of violation;and the defects of the audit commission system.At the same time,this paper takes the specific case of audit failure of Shine Wing as an example.After analyzing the fraud means of Deng Yun and the defects of audit process in this case,it concludes that the reasons for the audit failure are as follows:Certified Public Accountants failed to maintain the necessary professional doubt and failed to find the abnormal situation;insufficient execution of audit procedures such as letter confirmation and related parties;the lack of independence of Shine Wing;unqualified quality control of the project;Based on the above study,this article finally put forward the strategy of audit failure from the aspects of industry regulations,public accounting firms and certified public accountant with the current development of information technology,specifically include: introducing the audit entrust system of third-party payment;establishing a collaborative supervision pattern and the management system of accounting firms and certified public accountants;establishing audit information system;improving the efficiency and effect of the review system by information technology;cultivating new talents in the Certified Public Accountants industry and enhancing the level of informatization and professionalism of Certified Public Accountants.