Research On The Failure Of CPA Audit

Compared with developed countries,the development of domestic market economy is relatively backward,but in the process of development in recent years,there will be a series of problems but they are also constantly solved,so China’s capital market is basically formed,and good results have been achieved.However,in order to make China’s economic system more sound,we must first strengthen and improve the supervision mechanism.In terms of supervision mechanism,the most important is audit,which plays an indispensable role.From this point of view,there is still a huge space for audit in the future development process.But in recent years,the financial fraud of listed companies has been exposed frequently,so it is also related to the audit unit,which is one of the main forms of audit failure,so the audit institution should also accept the corresponding punishment.And it will bring a series of negative effects,for example,on the one hand,it will cause investment personnel to suffer certain economic losses,on the other hand,it will also be a negative impact on the reputation of audit institutions;As a result,China’s capital market has entered a state of disorder,and the authority of the audit industry will be reduced to a certain extent,whether for investors,enterprises or even the society.Therefore,audit failure will bring a series of adverse consequences,which is one of the common concerns of the society at present.Based on this,the academic circle has also carried out a comprehensive study on the issue of audit failure.Therefore,how to prevent audit failure is the most important problem at present,and it is also very important to study the influencing factors of audit failure of auditors.Articles in the process of research is mainly based on the China certified public accountants as sample,about the holy lida audit failure this specific example carried on the thorough research,and analyses its audit failure and preventive measures,the article refer to a lot of predecessors’ research results,and according to the article research topic related theory,based on the perspective of audit subject,audit units,A comprehensive study of the main factors and consequences of audit failure,the paper has the following aspects.The first chapter is the introduction.First of all,it explains the research significance of the paper,clarifies the research background of the paper,and carries out in-depth research based on the basic concepts,influencing factors and preventive measures of audit failure.At the same time,it also summarizes the research results of China,providing a theoretical basis for the research of the paper.The second chapter conducts a comprehensive study on the definition of audit failure,analyzes its basic characteristics,influencing factors and consequences,and puts forward audit conflict theory,information asymmetry theory and principal-agent theory.The third chapter takes Zhonghua accounting firm as the research sample,launches an in-depth study on the reasons for the audit failure of Shenglaida,and reviews the audit failure cases of Shenglaida.Holy lida in the hua certified public accountants audit failure forms,there are mainly the China film copyright on the authenticity of all the rights to perform effective audit procedures,did not effectively identify the potential risk of related party,in the audit financial aid non-operating income not diligently,when no date was found in the audit papers contradiction and inversion problem,At the same time,the author expounds that the financial fraud means of Shenglaida mainly include fabricating copyright transfer agreement to confirm the default income,assisting related companies to create false cash flow,fabricating government subsidy income and so on.The fourth chapter focuses on the main reasons and consequences of zhonghua accounting firm’s failure in the audit of Shenglaida.The reasons for audit failure of accounting firms can be summarized as follows: first,insufficient risk identification ability,second,no strict compliance with the quality control system;The reasons can be summarized as follows: first,the attitude of the CPA is not rigorous enough in the audit process;second,the professionalism of the CPA is not strong;third,the independence of the CPA is not guaranteed;The main factors of the audited company are as follows: the incomplete internal control system of Shenglaida,the lack of professional ethics of senior executives,and the poor business performance resulting in fraud.The main factors of external audit supervision are as follows: first,audit supervision is invalid;second,the relevant legal system is not perfect;third,the punishment intensity is insufficient.The fifth chapter is mainly a comprehensive review of the reasons for zhonghua accounting Firm’s audit failure of Shenglaida,and then summarized and summarized it,and then put forward that in order to avoid audit failure,the professional ability and professional quality of the note association should be continuously improved;Secondly,establish and improve the overall quality control of accounting firms,optimize the internal control system and governance structure of the audited units,establish a perfect market supervision mechanism,and increase the punishment.