A Case Study On Auditing By LAD Accounting Firm

In recent years,with the continuous improvement of China's capital market order,IPO listing has become increasingly difficult.Therefore,many companies choose to backdoor listing to enhance their competitiveness.However,with the increase in the number of cases of backdoor listings,the behavior of corporate whitewashing statements has gradually increased,and the number of cases in which accounting firms' backdoor listing audits have failed has increased.This failed audit will affect the reputation and reputation of the industry,making the public question the independence of the accounting firm and the credibility of the audit report,which is not conducive to the future development of the firm and the industry as a whole.This article uses the case analysis on LAD Accounting Firm to JH financial fraud case study,analyze the audit failure reasons on the level of public accounting firms and certified public accountants.These issues are very representative and provide countermeasures for preventing the failure of LAD listing audits.This paper adopts the literature research method by reading literature and combining analysis,theoretically and practically in-depth study of LAD's audit case for JH Group's backdoor listing.The article starts from asking questions,then analyzes the problem,and finally solves the problem and sorts out the article.First of all,starting from the actual situation of the case,the problems existing in the LAD audit process are elaborated one by one.Secondly,the cause analysis is based on specific problems combined with relevant theories.Finally,based on problem analysis and cause analysis,the CPA and the accounting firm's backdoor listing audit were put forward to make corresponding suggestions to improve the capital order of the backdoor market.It mainly includes the following four aspects.The first one is the background and significance of this reach,literature review,research ideas and methods,and expounds the research content and thesis framework.The second part is the case description of the fraud audit of the backdoor listing of JH group by LAD accounting firm.Firstly,it introduces the general situation of both parties of the case.Then it introduces the attitude of LAD accounting firm to fictitious income,false increase of deposit and concealment of pledge.Finally it states the punishment result of CSRC.In the third part,the case study mainly finds problems in the three stages of business undertaking,audit analysis and quality control review,and focuses on the cause analysis of problems in different stages.In the fourth part,it takes the conclusions and specific recommendations are mainly for the above search and analysis of the CPA and accounting firm.Through the in-depth exploration of the reasons for LAD Accounting Firm's failure to audit the JH Group's backdoor listing,it finds that the accounting firm and its CPA have a sloppy and audit analysis stage in the auditing of the backdoor listing audit.The control and review phase is weak and so on.The reason for the failure of LAD accounting firm and its certified public accountant is that the CPA has a weak sense of risk prevention,carelessness of the letter of credit procedure,lack of professional suspicion and competence,loss of professional ethics,and failure of quality control of accounting firms.