Research On Audit Failure Of FS Steel Company By Z Accounting Firm

With the progress of the times and the development of the economy,the failure of audit has also emerged.The audit industry has entered a period of trouble,and the audit method is facing difficulties and challenges.As a result,my country introduced a risk-oriented audit model.This model is a new type of audit model developed in the 21st century and has been widely used in audit practice.Through risk-oriented audit,you can timely discover risks in enterprise operations and have important value for corporate audit work.However,compared with foreign countries,my country’s firm still has a series of problems such as insufficient awareness and market participation in risk-oriented audit models in practice.The difficulties in equal areas failed to complete the audit in accordance with the requirements of risk-oriented audit standards,and failed to give full play to the role of risk-oriented audit,which led to the failure of the audit.Therefore,research on the failure of auditing under the perspective of modern risk-oriented audit is particularly important.This paper selects the audit failure case of FS Steel Company by Z firm as the research object.First of all,it defines the connotation of audit failure,the connotation,model and business process of modern risk-oriented auditing,expounds the main characteristics of audit risks in listed iron and steel enterprises,the relationship between the implementation of modern risk-oriented auditing and the occurrence of audit failures,expounds the principal-agent,Risk management and information asymmetry and other related theories.Secondly,it summarizes and introduces the basic situation of FS Company and Z Firm and the cases of audit failures.According to the modern risk-oriented auditing model,the reasons for audit failures of firms,enterprises and regulatory authorities are discussed from the perspective of material misstatement risk and inspection risk,mainly including the fact that firms did not fully comply with the requirements of risk-oriented auditing,and the internal system of FS was unreasonable.The entrusted relationship with shareholders is unclear,and the supervision is not enough.Finally,according to the reasons for audit failures,combined with the concept and criteria of risk-oriented auditing,relevant suggestions on how to better apply risk-oriented auditing to prevent audit failures in the audit process are put forward.Firms should maintain the independence of risk-oriented auditing,improve the quality of auditors,and strengthen the study of risk-oriented auditing concepts.Enterprises should improve their internal control structures and enhance their awareness of internal risk prevention.Regulatory authorities should increase supervision and punishment.In summary,accounting firms engaged in the audit business should be cautious when practicing to ensure the quality of the audit;listed companies should follow the basis of the establishment of financial reports,prepare financial reports and express it fairly,strengthen the awareness of audit risk prevention;government and regulatory agencies should should Strengthen supervision,improve the credibility of financial reporting users,and purify the capital market environment.