Case Research On The Discontinuous Audit Failure Of NEEQ Listed Company Xinlv Food

At the end of 2013,the State Council decided to expand the scope of NEEQ listed companies to the whole country.In 2021,Xi Jinping proposed to deepen the reform of NEEQ,which reflects China’s confidence in supporting the development of innovative and entrepreneurial SMEs.However,in recent years,accounting firms have been frequently punished for failing to audit NEEQ listed companies.The NEEQ audit issue deserves attention.The thesis chooses Xinlv Food for research,which is a NEEQ listed company.Because of the huge amount of fraud and numerous obvious defects in auditing process of the accounting firm,this case is representative.The thesis uses literature research method,case study method and induction method,and summarizes the concepts of audit failure,discontinuous audit failure and NEEQ audit on the basis of domestic and foreign related research.Starting from the introduction of Xinlv Food and Zhongxingcai Guanghua Certified Public Accountants,the thesis reviews the discontinuous audit failure event of Xinlv Food from the time dimension,and introduces the performance of the failure.The thesis makes an in-depth analysis of the process of discontinuous audit with modern risk-oriented auditing theory,and then looks for the reasons for the failure,including:First,the actual controller of Xinlv Food hoodwinks the public,using fraudulent performance as an assessment indicator,and the fraudulent system is "complete".Second,the certified public accountants rely on the audit results of the former certified public accountants and the information provided by Xinlv Food,fail to be diligent and responsible for the audit procedures of key subjects,fail to maintain independence and diligence.Third,Zhongxingcai Guanghua does not carefully consider the real reasons for changing accounting firm of Xinlv Food,does not carefully consider the changes in key management personnel,does not carefully evaluate its own auditing capability,so it is not prudent to undertake discontinuous auditing business.Fourth,there are deficiencies in the special risk assessment by certified public accountants for the fraud and major connected transactions of Xinlv Food.Fifth,the quality control procedure of Zhongxingcai Guanghua has not been implemented.Sixth,the reason for the change of accounting firms of NEEQ listed companies is not specific,the disclosure of communication progress between the former and former accountants is insufficient,and the supervision on the disclosure of discontinuous audit information of NEEQ is imperfect.Through the analysis of audit process and the failure reasons,the relevant enlightenment and reference are put forward from the perspective of audit subject and the external environment,mainly including certified public accountants need to strengthen their awareness of social responsibility and maintain professional skepticism,etc.Accounting firms need to give attention to the discontinuous audit evaluation and the quality control system implementation,etc.In the external environment,the discontinuous audit information disclosure supervision of NEEQ listed companies should be strengthened,so as to provide valuable reference for regulating the NEEQ audit market.