Analysis On Audit Failure Of Ruihuacertified Public Accountants's Audit To Zhenlong Co.LTD

With the continuous development of capital market and securities market,the competition among the listed company also gradually enhanced,whitewash statements to obtain higher profit,and as a last line of defense for certified public accountants,did not play a proper role,leading to audit failure.As is known to all,Rui Hua Certified Public Accountants is a strong professional,diversified business which has a strong professional ability of team.It is known that it has an important role in the auditing profession and a lot of influence in professional field and brand construction.RuiHua,however,the accounting firms to audit the LiaoNing ZhenLong co.,LTD.,in the face of the audited units of financial fraud,RuiHua had still issued the audit report with modified audit opinions for three consecutive years,leading to audit failure.In March 2017,the securities and futures commission issued,giving corresponding punishment with 1.3 million yuan and 1.3 million fined.The case happened in the nation's largest public accounting firm,and thus brought the serious negative effect,seriously disturbing the order of audit market,without a good leading.It also implies the auditing industry is going from bad to worse in our country,and the professional audit in audit market is in short supply,low audit quality,and the phenomenon such as the deficiency in the system of accounting firm management.This article adopts the method of theory with case analysis,based on the Fraud Triangle theory,Principal-agent theory and Information Asymmetry theory,the first part is to introduce basic case,including basic subject on both sides of the profile long stock fraud of vibration and the audit results.Then from the auditees,Rui Hua certified public accountants and auditing profession three angles in analyzing the reasons of audit failure,then the lessons have been learned from the audit failure case and enlightenment,finally we will draw a conclusion: As a certified public accountant,avoiding audit failure should keep professional suspicion ability and professional competence;In the case of audit failure,the accounting firm should intensify the punishment to play a vigilant role.For the audited units,the internal audit committee shall be set up in the enterprise to actively cooperate with the accounting firm to complete the audit work.For auditing the whole industry,the audit admittance threshold should be increased,the industry competition should be regulated,and the audit quality should be improved.