Certified Public Accountant Audit Failure Case Studies-based On Lu Dadi Audit Failure

With the rapid development of market economy,CPA industry is playing an increasinglyimportant role in the capital market.The development of capital market make people pay more attention tothe quality of accounting information.the increasing demand for the audit,the audit reports issued by CPAhas become the focus of attention.However,a recent spate of Audit failure events caused an enormousbreakdown of trust in CPA who always play the role of "economic police",and the entire auditing industrytriggered a crisis of confidence.In2013,Xindadi Biotechnology,Wanfu Biotechnology,TianNengTechnology,Green Land Biotechnology and other audit failures exposure to the public,which confronted tosevere punishment and censure from China Securities Regulatory Commission,government departmentsand the public.Throughout recent years,dozens of audit failures punished by the Commission,have soundedthe alarm to the CPA.We must focus on solving problems and improving the serious situation.This paperanalyzes the severe situation of audit failures though the decisions issued by the China SecuritiesRegulatory Commission in recent years and making a detail analysis of the reasons of the audit failures andcorresponding countermeasures though the concrete analysis of Green Land Biotechnology,build thetheoretical framework of audit failure.To improve the market regulation and corporate governance,promotethe development of the whole industry of CPA has important practical value.Also hope that through thisarticle research,Ability to work of CPA to audit in our country,and prevent the audit failure.This paper starts with a discussion of the background and significance of the topic,summarize theliterature review both at home and abroad in terms of audit failure.The second is about disclosure theory inaudit failures,make a clear definition of the concept,whether the CPA compliance with the auditing standards in auditing is the mainly standards to judge whether audit failure or not.and summarize thedifferences and contacts between audit failures and relevant concept to conduce to elaborate study.For2000to2013,China Securities Regulatory Commission made a series of penalty decision on52audit failureevents,analyzed the current situation,characteristics and hazards of CPA audit failures from macroscopicview.Combined with the52decisions of punishment,this paper make a concrete analysis of Green LandBiotechnology,through the use of case analysis method to summary CPA fails from three aspects——theAudit subject and Audit object,social and environmental reason in a comprehensive,systematic way,and putforward the corresponding countermeasures from the above three aspects.The last part of the articlesummarizes the research conclusion and the limitations existing in the process of research.