Research On Corroboration Problems In Audit Failure Of Ruihua Certified Public Accountants

In recent years,audit failure cases have emerged one after another,most of which include the fraud of monetary funds.For the audit work of accounting firms,most of them have the problem of corroboration.Frequent audit failures will not only affect the accounting firm itself,but also hinder the healthy development of the audit industry.In the State Office No.30 document issued in 2021,confirmation is the only audit procedure listed separately that needs to be further standardized,which is enough to show the necessity and urgency of solving the problem of confirmation.After sorting out the domestic and foreign research on the corroboration problem in audit failures,this paper analyzes the 33 audit failure cases punished by the China Securities Regulatory Commission from 2016 to 2021 on the basis of the theoretical basis of the existing research.From the perspective of the accounting firm,it can be seen that the frequency of confirmation issues in the failure,the types of confirmation issues involved,and the specific situation of confirmation issues,Ruihua Certified Public Accountants is much higher than other firms in terms of the number of penalties and the number of confirmation issues.,and Ruihua was dissolved after the audit failed,which has a good reference value,so Ruihua was selected as the object of this case analysis.This paper selects five typical cases from the audit failures of Ruihua,covering most of the problems that are likely to occur in correspondence.Combined with the current policy regulations and its own practical experience,it first introduces the basic situation of Ruihua,and then respectively analyzes the problems of Ruihua.The corroboration procedures and the corroboration problems in selected cases are sorted out,and the reasons are analyzed from five perspectives of certified public accountants,accounting firms,supervision,audited objects,and corroborated objects.consequences of the certificate.Finally,based on the reasons,I will focus on external supervision and blockchain platform construction,as well as five levels of certified public accountants,accounting firms,and audited objects to put forward effective suggestions.I hope that through the case analysis of Ruihua Accounting Firm,other Accounting firms have paid attention to letter confirmation,and hoped that multi-angle suggestions will help multiple parties to solve the problem of letter confirmation,improve audit quality,and promote the healthy development of the audit industry.