Research On Audit Failure Of High-tech Enterprises

In 2022,the Central Economic Work Conference emphasized the need to strengthen the scientific and technological innovation of enterprises and ensure the main position of innovative enterprises in national development.With the rapid development of science and technology,high-tech enterprises,as knowledge-and technology-intensive innovation subjects,have become an indispensable part of China’s modern economic system and provide strong support for the high-quality development of the real economy.Since 2008,national and local governments have been actively improving the policy environment that supports the long-term development of various high-tech enterprises and advanced technology enterprises,and the number of innovative and SME high-tech enterprises increased rapidly in 2016 due to changes in the conditions for high-tech enterprise recognition.However,despite the introduction of many policies favoring the development of high-tech enterprises in China,there is a certain lag in the corresponding legal rules and external regulatory environment,coupled with the existence of irregularities in the behavior of the auditor as a third party,which has led to the emergence of audit problems in high-tech enterprises,and a number of high-tech enterprises,such as Shengtong Group,Kangde Xin and Yabat,have experienced audit failures.Although the existing literature has analyzed the direct causes of audit failure in detail,there are still a large number of examples of audit failure of high-tech enterprises in the market,we have to start thinking deeply about the "drivers" behind the failure factors in the light of their industry specificity.Based on principal-agent theory,information asymmetry theory,audit conflict theory and modern risk-oriented theory,this paper analyzes the problems related to audit failure of high-tech enterprises with the case of Ruihua firm’s audit failure of Sorin.First,the current situation of auditing high-tech enterprises is analyzed.It mainly includes the development status and special features of high-tech enterprises,the main audit risk areas of high-tech enterprises and the reasons for their audit failures.Secondly,an overview of the case of Ruihua’s audit failure on Sorin shares is introduced,introducing the basic information of the relevant subjects of the case,reviewing and describing the case,and revealing the penalty results and impacts on the audit subjects and objects of the case.Once again,we analyze the causes of the audit failure case of Ruihua on Soaring,from the CPA level,the CPA firm level and the external environment level,and analyze the quality management system of the firm,the relevant external audit system and the auditors’ own problems.Finally,we propose specific countermeasures and suggestions for the audit failure of high-tech enterprises from the perspectives of CPA,accounting firm and external environment,including improving the comprehensive quality of auditors,paying attention to the standardized implementation of audit procedures,optimizing the quality control system of the firm,and strengthening the construction of relevant regulatory mechanisms.There is a lack of literature on audit failure of technology-heavy high-tech enterprises in existing studies,and most of the articles related to audit failure are studied with traditional manufacturing enterprises as cases.This paper analyzes the causes of audit failure by combining the industry specificity of high-tech enterprises,which to a certain extent provides a reference for audit failure of high-tech enterprises,supplements the omissions of previous studies,and further enriches the audit failure of high-tech enterprises The theoretical research of high-tech enterprises.