Research On Audit Failures Based On Internal Management Of Accounting Firms

The development of capital market is changing,accounting firms and certified public accountants is increasingly needed,and the CPA profession is playing a more significant role in our capital market.The development and perfection of the capital market and the Internet economy and big data technology make people pay more attention to accounting information's quality.By the end of 2017,we are now able to query a total of 1040 to CSRC administrative penalties,there were 37 accounting firms punished for auditing failure and 134 certified public accountants.Frequent exposure of audit failure cases at home and abroad,has to certified public accountant industry,even the whole audit has brought the unprecedented credit crisis and prestige,serious damage to the accounting firm for a long time of good social image,but also affects the reputation of certified public accountant industry and the future development.The problem of audit failures is worth paying more attention and needs governance.In this paper,the CSRC in 2001 to 2017 of the administrative punishment announcement made a comprehensive search,which found by the audit failure of certified public accountants for a total of 12 were punished several times,but the Reanda accountancy administrative penalties to seven times at the top.Chose 7 cases from Reanda over the years of audit,the use of case analysis and qualitative analysis method,the statistics and summarized the failure case in one of the main problems,based on the public accounting firm internal management point of view,the study found that certified public accountants internal organization and management,human resource management and business management problem is the main reason for the audit failure.Finally,from the certified public accountants audit failure to prevent the three aspects: internal management problems of Suggestions,in order to improve the appeared after a spate of certified public accountants audit failure of the status quo,improve audit quality,promote healthy development of capital market and the certified public accountant industry.