Analysis And Countermeasure Research On The Implementation Defects Of Certified Public Accountants’ Audit Procedures

As the constant deepening of socialist market economy,the audit field of our country experiences more than 30 years of reform and development,has got great progress.However,there are still some shortcomings in the process of reform.The frequent occurrence of audit failures of accounting firms shows that the securities market in China needs to be further optimized.Once the certified public accountant lacks sufficient financial support,coupled with the restriction of professional ability and working hours,the implementation process of audit procedures will be hindered,making the audit report unable to reflect the real situation reasonably.Judging from the penalty announcement of accounting firms by CSRC from 2019 to 2021,it can be concluded that audit procedure implementation defects are the main factor of audit violations.Therefore,it is of great significance to study the defects of audit procedure execution,find their root causes from them,and put forward the strategies for improvement accordingly.Based on the audit theory and related concepts,this paper first carefully studies the administrative penalties imposed by China Securities Regulatory Commission on accounting firms from 2019 to 2021,describes the current situation of audit procedure implementation defects,and finds that audit procedure implementation defects are the main cause of audit failure.Secondly,three typical cases of Kangmei Pharmaceutical,Fushun Special Steel and Xinlu Stock were selected for concrete analysis,so as to have a more intuitive understanding of the specific performance of CPA audit procedure implementation defects and the resulting consequences.Thirdly,from the accounting firm,the CPA individual and the external environment three aspects of detailed analysis of the audit procedure implementation defects.Finally,according to the above reasons,the corresponding suggestions and countermeasures are also put forward from these three aspects.Through the study of this paper,it is found that: first,the implementation defects of audit procedure are mainly concentrated in four aspects: confirmation procedure,inspection procedure,analysis procedure and inquiry procedure.Secondly,there are three reasons for the defects in the implementation of audit procedures: the imperfect quality control system of the firm,the lack of understanding of the clients’ economic and business conditions,etc.Lack of professional ability,weak independence and other personal aspects of certified public accountants;Industry competition pressure,weak supervision and other external environment.Thirdly,there are three aspects to improve the implementation of audit procedures: perfecting the quality control system,implementing the audit rotation system and other aspects of accounting firms;Improve their professional ability,strengthen the level of professional ethics and other personal aspects of certified public accountants;Strengthen industry supervision,regulate industry competition and other external environmental aspects.