Case Study Of Revenue Audit Failure Of M Pharmaceutical Company By Z Accounting Firm

In recent years,the pharmaceutical industry has occupied an increasingly important position in the national economy and is a typical sunrise industry.However,in the context of China’s rapid socio-economic development and the changing situation of the securities market,the pharmaceutical industry has become one of the industries with a high incidence of fraud and falsification due to numerous reasons such as the complexity of business types and production and operation processes,the lack of uniform standards for many related accounting confirmations,and the special characteristics of the industry.Since the pharmaceutical industry is highly scrutinized by the public and the state,the frequent audit failures have not only plunged the pharmaceutical industry into social skepticism and public opinion,but also threatened accounting firms with a loss of credibility.Although the root cause of this series of events is the misrepresentation of financial information by companies for immediate self-interest,the duty of accounting firms as independent third parties is to investigate and correct errors,therefore,audit failures due to the failure of accounting firms to properly perform their duties and strictly implement the audit procedures can also lead to severe penalties for accounting firms and a crisis of confidence.In this context,this thesis selects a typical case of revenue audit failure in the pharmaceutical industry,where fraud and falsification have occurred many times: the revenue audit of Company M by CPA firm Z as the object of study,In this context,this thesis starts from the pharmaceutical industry,where fraudulent fraud has occurred many times,and selects a typical case of revenue audit failure: the revenue audit of Company M by CPA firm Z as the research object,and uses literature research method and case study method to analyze the problems in the risk assessment procedures,control tests,substantive procedures and completion of audit work of Company M by CPA firm Z from the perspective of audit procedures.I analyze the problems in the process of risk assessment procedures,control tests,substantive procedures and completion of audit work of Company M.I also analyze the reasons from the aspects of independence,professional skepticism,professional competence and quality management system of accounting firm,and make suggestions for optimization from the perspective of income audit procedures,from which I draw conclusions of revenue audit risk points and procedures and recommendations for optimization in the pharmaceutical industry,and provide an outlook on the research of this thesis.At present,scholars from all fields have made some research on revenue audit,but among them,the research related to audit failure is relatively more and more mature,and the research related to revenue audit is relatively less.Therefore,it is hoped that the analysis of this thesis can provide reference for the improvement of revenue audit in pharmaceutical industry,so as to improve the quality of revenue audit in pharmaceutical industry and reduce the occurrence of audit failure.