Analysis On The Failure Of Shanghai DZH Limited Audit By Lixin Accounting Firm

China in 1981 to restore the CPA system,So far,the CPA audit has been developed for more than 30 years,In this process,CPA sustained and rapid development,improve the efficiency of the control mechanisms of the market economy,the market economy can operate effectively.But these years,due to the rapid changes in the market environment,people increasingly demand for the audit,the quality of accounting information more attention,so the audit risk rising,certified public accountants are also increasing litigation.More and more audit cases have been punished by the China Securities Regulatory Commission,the audit industry in the public in the sharp decline in trust,seriously affecting the reputation of the audit industry.Therefore,how to reduce the audit risk,The prevention of audit failure has become particularly important.Based on the background meaning of the topic,this paper uses the method of literature analysis,case study,according to the idea from problem to countermeasure,Select which led to the majority of investors concerned about the Shanghai DZH Limited audit case for a specific analysis,Summarizes the reasons leading to the failure of the audit: Failure to perform the required audit procedures as required,Auditor did not maintain adequate professional skepticism,The quality control of the agency is not in place,Lack of independence of auditors,Environmental audit imperfect.At the same time according to the modern risk-oriented audit theory,how to prevent the failure of the specific countermeasures: Enhance the professional competence of auditors,Pay attention to income fraud,Have enough professional skepticism,Strengthen the firm's quality control implementation,Improve audit independence,Improve the capital market laws and regulations.The value of this paper lies in the study,Through a series of analyzes,auditing agency and auditors can provide better guidance for auditing operations,as far as possible to enhance the ability of auditors to take risks,and further strictly regulate the behavior of the auditors,So as to avoid the audit in the implementation of a comprehensive audit process,because the auditors did not follow the relevantguidelines for the audit process,did not maintain due prudence and professional skepticism and other reasons,and ultimately issued a false audit report,resulting in audit failure.so that the development of enterprises can be carried out in an orderly manner,for the overall development of economic society to provide more quality services,and ultimately the development of China's audit industry You can get theoretical and practical basis.