Listed Companies Audit Failure Problems Research

With the development of China’s market economy,a series of financial frauds and audit failures have occurred successively since the end of the last century.In recent years,with the continuous strengthening of relevant state supervision and the continuous improvement of accounting systems and auditing standards,China’s accounting firms have made great progress in terms of quantity and service quality.Auditors’ professional skills have become increasingly sophisticated,and capital markets have Financial information is more standardized than before.However,it is undeniable that the failure of the audit still occurs.For example,Xintai Electric and Yabai Te and other listed companies have serious financial fraud problems.The accounting firms providing audit services have issued inappropriate audit opinions.It is becoming more and more important to analyze the cases of failed audits of listed companies in our country and explore the root causes of audit failures.This article uses literature research,case studies and other methods to analyze the causes of audit failure.By analyzing the concepts of audit failure,audit risk,business failure,and financial fraud,we explore the causes of financial fraud,clarify the relationship between financial fraud and audit failure,and analyze the causes of audit failure.In view of the case of Shanghai Great Wisdom,starting from three perspectives: the audit subject,the object,and the regulatory environment,it profoundly digs into the root causes of the audit failure of listed companies: Listed companies have fraud motives and opportunities,accounting firm weak quality control,external supervision is inadequate,and illegal low cost.Focus on how to avoid the failure of auditing,put forward effective measures and suggestions in order to reduce the occurrence of audit failure.