| With the development of social economy,the CPA industry came into being.But in recent years,the diversification of market economy and the change of high technology lead to the endless failure of auditing at home and abroad.It has seriously affected the healthy development of the capital market,caused huge economic losses to the investors,the made the trust of accounting firms and CPA industry in the public drop sharply.Therefore,it is very necessary to explore the causes of audit failure and propose corresponding improvement measures to reduce the occurrence of audit failure according to some typical cases.This article takes the Lixin firm's audit failure of the 2013 financial statements of Shanghai great wisdom firm as an example,and takes the theory of fraud triangle,principal-agent theory and the "rational economic man" hypothesis as the theoretical basis.The main answer is:what is the audit failure?What is the cause of the audit failure?How to reduce and avoid the risk of audit failure?The characteristics of this paper are:research content:comprehensive analysis of the factors affecting audit failure combined with multiple angles;research method:using the case study method to analyze the reasons for the specific case of audit failure by combining the comprehensive perspective;case selection:the case of Shanghai big wisdom,which is relatively new and has great market influence,is a rare case of computer application service audit failure.Through studying and summarizing the existing research,this paper chooses"process theory" as the definition of audit failure.This paper analyzes the audit ability of CPA according to the financial statement data of great wisdom;through the analysis of the business characteristics of the software enterprise in which the great wisdom belongs to,does statistics of fraud in the software enterprise in the last 10 years and all companies audited by the accounting firm to analyze the audit experience of CPA in this industry;analyzes the CPA independence through three dimensions(the principal-agent relationship,the years of audit employment and the malignant competition).At the same time,the factors such as the quality control of the firm and the cost of the violation are considered,and the reasons for the audit failure are analyzed from many angles.Finally,in order to prevent audit failure,especially the failure of the software enterprise,this paper puts forward some pertinent improvement measures to CPA and CPA firms.In the future audit activities,CPA and CPA firms should pay attention to the professional quality of the auditors and the audit experience to the special industry,and fully understand the characteristics of the industry to determine the high risk point and the audit focus.When routine audit procedures cannot be implemented,effective alternative procedures should be adopted.The sense of responsibility of auditors should be enhanced and the quality control system of auditors should be established and improved.The author hopes that this research can reduce the risk of CPA audit failure. |
