The Case Study On Audit Failure Of Kangdexin Company By Ruihua Accountant Firm

In recent years,audit failure cases occur frequently,which brings heavy losses to investors and capital market.As a medical practitioner of enterprise financial statements,accounting firms often issue audit reports that are inconsistent with the actual financial situation,which seriously damages the fair and objective image of accounting firms,and also loses some customers.Therefore,it is urgent to put forward improvement measures for the lack of existing audit service quality.This paper analyzes the causes of audit failure from the actual cases,and provides feasible suggestions for the firms and relevant regulatory agencies,so as to maintain the health of the capital market and protect the interests of the majority of small and medium-sized investors,The specific contents of each chapter are as follows.The first part is the background of the topic.In recent years,financial fraud has occurred repeatedly,which has damaged the objective and fair image of accounting firms and certified public accountants and the social public reliability of audit business.How to improve the audit quality needs to be solved urgently.The second part is the research ideas,using the ideas of finding,analyzing and solving problems.The third part is the analysis and discussion,describing the illegal facts of information disclosure and financial data fraud of kangdexin,and looking for the deficiencies of Ruihua Institute's accountants from the audit plan,implementation and report stages,so as to lay the data foundation for the analysis of the first reason.The fourth part is the main conclusion.The reasons of audit failure are the lack of independence of certified public accountants,the lack of diligence in their practice,the unscientific salary assessment system,the top-down fraud of the company's management and the lax supervision.Targeted measures include maintaining independence and professional skepticism of certified public accountants,strictly implementing auditing standards,job rotation and three-level review of firms,improving litigation management and external guarantee system of auditees,improving information disclosure,prohibiting low-cost competition,introducing credit rating system,setting industry threshold and combining civil litigation,and accountability.