Research On Audit Failure Of Listed Company In Revenue Recognition In The Perspective Of Risk-oriented Audit

Audit failure means giving inappropriate audit opinions in certified public accountants' audit reports during their audit performance,which is caused by not complying with relevant standards strictly,such as audit standards.In recent years,shocking certified public accountants' audit failure events contributed to financial fraud and counterfeit occurred one after another in internal capital market such as “Green Land Counterfeit Event”,“New Land Counterfeit Event”,”Tianfon Energy-Saving Counterfeit Event” and “Nine Top Counterfeit Event”,which make Ruihua Certified Public Accountants(Limited Liability Partnership)and BDO(Special General Partnership),ranked first and forth in 2016 nationwide ranking respectively,suspend the undertaking of new security business early and lately.Even some large and medium CPA firms,for example,Shenzhen Pongcheng Certified Public Accountants Co.Ltd,lost their securities and futures qualification due to audit failure and so can no longer involve securities business.This article states internal control,fraud trace,fraud method and risk-oriented audit methods in revenue recognition in the perspective of risk-oriented audit,which is based on the summary of the research finding of the scholar in and abroad in audit methods and audit failure in revenue recognition,and analyses the reasons of audit failure in revenue recognition combined with the audit failure events caused the punishment of CPA firms involved in Written Decision of China Securities Regulatory Commission on Administrative Penalty(2010-2017)and tries to find the measures to avoid the audit failure in revenue recognition.