Analysis On Audit Failure Of Accouting Firm

With the gradual development of China’s socialist market economy,more and more people realize the importance of audit quality,and pay more attention to the audit report.Therefore,the emergence of the independent audit industry is particularly necessary,it can make the owner of the enterprise understand the actual information of the enterprise comprehensively and control the management of the enterprise.Accounting information plays a very important role in investment decision,Audit of Certified Public Accountants is of great significance to ensure the healthy operation of the capital market economy and to ensure the quality of accounting information.However,due to the influence of various factors,the CPA audit can not absolutely guarantee the quality of accounting information.In the capital market,the phenomenon of CPA audit failure has occurred,the public has questioned the professional ethics of the CPA profession.At the same time,the financial report of the listing Corporation which is audited by the certified public accountants also has a lot of distrust,which leads to the relationship between the public and the accounting firm in a critical situation.Therefore,how to ensure the audit quality to improve the trust,and standardize the audit market,has become the focus of research topics.This thesis is carried out with the ideas of raising questions,analyzing questions and solving questions,combining theoretical knowledge with case analysis.The paper begin with the related literature and theories about audit failure at home and abroad,meanwhile,the concept of audit failure is clearly defined,besides,the paper provides a theoretiacal explanation to the relationship between the audit failure,audit objectives,audit risk and business failure,put forward the theoretical basis for the cause of the audit failure.And in the specific study of the total Nanjing LiXin accounting firm selected for audit failure cases,NaFang shares Company specific case,the audit check fraud case and punishment by the case,the process of introduction of audit fraud case,the use of agency theory,conflict theory audit and asymmetric information theory from the perspective of the audit body conducted an audit of the causes of the failure analysis.Finally,on the Nanjing LiXin accounting firm NaFang shares audit failure case studies,combined with the specific situation from the audit body,the object of the audit,the audit proposed three aspects of the social environment of the CPA audit failure prevention measures.The contributions of this paper are as follows:(1)this paper expounds the causesof the failure of CPA auditing and put forward the policy suggestions and enlightenment to prevent audit failure through the analysis of representative cases;(2)this paper summarize the reasons for the failure of audit in typical cases and put forward some pertinent suggestions for accounting firms,certified public accountants,and supervision departments,help to improve the quality of audit;(3)this paper provide reference for the formulation of laws and regulations related to the CPA profession in our country.This paper consists of five parts: The first part introduces the background,meaning,the research actuality at home and abroad,the research approach and basic frame of the paper.The second part is about the theory of accounting firms and CPA audit failure.The third part introduces the brief introduction and the specific process of the failure case of Nanjing LiXin accounting firm;In the fourth part,the case of audit failure of Nanjing LiXin accounting firm is analyzed.In the fifth part,through the analysis of the above conclusions,this paper put forward some suggestions on the prevention of audit failure of the accounting firm.