Research On The Failure Of HJDY Audit

In recent years,various financial fraud incidents have been exposed due to the emergence of audit failures.As an auditor,it has been affected by a series of negative effects,and its professional ability has been questioned.Now,the failure of audit case of HJDY Automobile Parts Co.,Ltd.once again illustrates the problem of accounting firms,that is,the firms do not do their due responsibilities well.This paper takes the firms as an angle to conduct in-depth analysis,finds the problems existing in the audit process,and puts forward pertinent suggestions according to the problems,in order to alert other firms to prevent further errors,at the same time,this It is also an innovation of this paper.This paper takes HJDY Automobile Parts Co.,Ltd.as a case study by XYZH Accounting Firm,and conducts in-depth research and analysis by case study and literature survey,and consulting the punishment announcement of the SFC.It is found that the main causes of audit failure include:(1)CPAs fail to audit according to audit procedures;(2)insufficient professional competence of auditors;(3)accounting firms are affected by economic factors;(4)there are defects in quality control of audit firms;(5)auditees do not actively cooperate with audit firms.These problems inevitably have a series of negative effects on auditors,firms and society.In order to ensure the order of the capital market and the normal operation of the market,some suggestions are put forward according to the reasons:(1)strictly implement audit procedures;(2)enhance the professional competence of auditors;(3)strengthen the communication between auditing units and auditees;(4)strengthen the quality control of audit firms;(5)prudently select audit items.