Research On The Reasons And Countermeasures Of Audit Failure Based On GONE Theory

In recent years,cases of audit failure in the capital market have continued to emerge,causing many investors to doubt the reliability of audit reports.Between 2015 and2020 alone,the China Securities Regulatory Commission imposed penalties on 14 domestic accounting firms due to audit failures.For a long time,CPAs have shown themselves as "gatekeepers." Their professional and independent audit duties are necessary to ensure the authenticity of financial information and regulate the orderly operation of the capital market.However,audit failures frequently hitting news headlines have challenged the credibility of the entire audit industry and are not conducive to the long-term healthy development of my country’s capital market.In the face of such a realistic situation,research on the causes and countermeasures of audit failure will highlight its actual value.Aiming at the issue of audit failure,this article focuses not only on the audit entity’s default of audit behavior when controlling the inspection risk,but also considers the fluctuation of the risk of major misstatement caused by the audited unit’s own fraud factors.On the basis of sorting out the common problems of audit failure cases of the China Securities Regulatory Commission in the past five years,the GONE theoretical model is used as the starting point to analyze the influence of fraud factors on the risk assessment of major misstatements and the design of audit procedures to explore the causes of audit failures.First of all,this article uses the literature research method to explain the audit failure and audit risk,and at the same time defines the four factors of the GONE fraud theory,and explains its mechanism of action in the research of this article.Secondly,the statistical analysis method is used to sort out the attribution of the status quo of audit failure in my country.Then use specific cases as the analysis carrier,combined with GONE theory to analyze the influence of fraud factors on the risk of major misstatement,and the audit entity’s behavioral failure to control and check the risk.Finally,specific suggestions are given for measures to prevent audit failures.The research conclusions of this article: First,in terms of the causes of major misstatement risks,the four perspectives of GONE theory are provided to audit subjects to identify recommendations;second,in terms of checking risk causes,the CPAs,accounting firms,and the regulatory environment are targeted Suggestions on response measures.This article hopes that through the above analysis,we can make some experience summaries for audit failure prevention and reduce the frequency of follow-up audit failures.