Case Study On Audit Failure Of Ningbo Shenglaida By Zhonghua Certified Public Accountants

In recent years,the capital market has developed rapidly and the market mechanism has been reformed.In order to promote the vigorous development of the domestic economy,the government has provided policies,platforms and other help to many small and medium-sized enterprises.For a time,many emerging small and medium-sized enterprises faced the trend of economic development,and the scale of the company developed very rapidly.As the gatekeeper of the capital market,certified public accountants should strictly control the financial operation of enterprises.However,the recent audit failure cases of accounting firms appear frequently,which not only brings losses to investors,but also has a great impact on the capital market.Therefore,in order to maintain a stable market order,the study of audit failure cases of accounting firms has become an urgent task.Therefore,the research of this paper is of great significance to the development of the current market.This paper makes full use of the traditional literature research method and typical case analysis method,summarizes the relevant research results of domestic and foreign scholars on the audit failure of accounting firms,and makes a detailed theoretical judgment and case analysis on the reasons.On the basis of fully clarifying the principal-agent theory,information asymmetry theory,fraud risk factor theory and risk-oriented audit theory,this paper makes an in-depth investigation and Analysis on the typical cases of audit failure of Shenglaida company by Zhonghua accounting firm.Firstly,this paper expounds the general situation of audit failure cases of Zhonghua certified public accountants and the punishment results of CSRC on both sides.Secondly,this paper analyzes some problems existing in the audit process of Zhonghua accounting firm,and makes a detailed analysis of the reasons for its audit failure according to the actual situation of Zhonghua accounting firm.Finally,based on the above analysis,this paper puts forward corresponding countermeasures and suggestions for the problems of Zhonghua accounting firm.This paper study of Zhonghua accounting firm’s audit failure is very helpful for accounting firms to strengthen their vigilance and improve audit quality.It is concluded that the accounting firm should always maintain its independence,carefully select customers,regularly train certified public accountants and strengthen the internal management of the firm.Thus,it can help accounting firms reduce the occurrence of audit failure,improve the reputation of accounting firms and ensure the good operation of capital securities market.