| With the rapid development of the capital market and the separation of the enterprise’s management rights and ownership in our country,investors and other information users need the key financial information provided by certified public accountants to make related investment decisions.The purpose of the certified public accountants’ auditing work is to find and reveal the problems existing in the enterprises during the audit process of financial reports,and provide reasonable guarantee for the financial information of the enterprises,and then issue authentic and reliable audit reports.At the same time,the development of the economy and the maintenance of the capital market order in our country are both inseparable from the independent auditing work of the accounting firms.However,in recent years,more and more accounting firms in China have been punished by CSRC and the public has begun to question the professional competence of the certified public accountants and the accounting firms.Audit failure will bring a lot of negative impacts to the audit industry,capital market,supervision department,and the whole society.Under this circumstance,the role of the accounting firms in uncovering fraud and maintaining economic order is very critical.The audit industry of China faces the problem of how to improve audit quality and reduce audit failure.Based on the audit failure cases of Rui Hua Accounting Firm auditing YaTaiShiYe,this paper applies relevant theories to practice to conduct this case study.On the one hand,this paper introduces the concepts of audit failure and audit risk,and explains relevant theories.On the other hand,this paper briefly describes the specific circumstances of the audit failure case,and analyzes the causes of the audit failure on the basis of exposing the fraud process of YaTaiShiYe,and proposes countermeasures to prevent the audit failure.This paper includes the following four parts.The first part of the introduction firstly describes the background and significance of this case study in the current social background.Then it summarizes the related domestic and foreign literatures in recent years,and comprehensively explains the research results of domestic and foreign scholars on various aspects of audit failure.The second part is the case introduction.Firstly,it introduces the Rui Hua Accounting Firm and YaTaiShiYe.Then it describes the specific fraud behavior of YaTaiShiYe and the problems existing in the audit process of RuiHua Accounting Firm.The third part is the case analysis.Firstly,it introduces the related concepts and theories.Secondly,on the basis of concepts and theories,it specifically analyzes the reasons for the audit failure of Rui Hua Accounting Firm.The fourth part is the conclusion and revelation.According to the specific analysis above,it summarizes the causes of audit failure,and for auditing the real estate enterprise,the accounting firms and auditors must use some key audit methods and focus on the related risk identification.It also puts forward some targeted measures to the specific audit issue in the case. |
