Research On The Identification And Prevention Of CPA’s Non-diligence In Auditing

In recent years,with the continuous improvement of the capital market,the SFC has disclosed an increasing number of incidents of misconduct of CPAs,which has aroused widespread concern from all walks of life.From a macro perspective,the main reason is that the existing laws and regulations do not clearly stipulate the specific standards of diligence and due diligence of CPAs.From a micro perspective,the cost of violation of law for CPAs in China is low and the impact of violations on the reputation of CPAs is small.The large number of audit failures caused by CPAs’ lack of due diligence reflects that there are many problems in the practice of CPAs in China.The specific benchmark for judging their lack of due diligence is whether the professional ethics of CPAs are well observed,and more specifically,whether CPAs have maintained diligence throughout the audit process.Using a combination of objective and subjective factors,this paper considers and examines three specific aspects from process factors,conclusive factors to elements of professional competence,and proposes criteria for defining whether a CPA has exercised diligence.This is followed by an analysis of the case,using the identification of signs of financial fraud in *ST Sauling as a guide,an analysis of the performance of the CPA’s failure to exercise due diligence and an analysis of the reasons for it,and an in-depth explanation of the "defining criteria" summarised to verify the operability of the criteria for measuring due diligence.It then provides a brief analysis of the correlation between a CPA’s failure to exercise due diligence and audit failure,and finally proposes measures to prevent audit failure due to a CPA’s failure to exercise due diligence,in order to improve audit quality and reduce audit costs.In terms of regulatory oversight,a clear definition of judicial standards for diligence can standardise judicial practice and procedures and improve the scientific and universal nature of administrative regulatory oversight.At the firm level,helping them to improve their audit quality control systems,quality monitoring bodies and reasonable reward and punishment mechanisms can help them to improve audit quality and public reputation,as well as promote their harmonious and progressive development.At the CPA level,clearly defining the elements of diligence and due diligence standards can improve audit quality,help CPAs better comply with professional ethical values and increase their subjective motivation to comply with their audit obligations and responsibilities.It is hoped that by regulating the conduct of CPAs,it will promote CPAs’ initiative to maintain a diligent and responsible work attitude in the audit process,thereby improving audit quality,enhancing public confidence,maintaining a healthy and sustainable development of the audit market,and filling in new firewood for academic research.