A Case Study Of Audit Failure Of RH Accounting Firm

With the continuous prosperity of the capital market,more and more enterprises raise funds through IPO to expand their scale.Social ordinary investors according to the situation of the enterprise,to decide whether to invest,but investors are independent of the enterprise,does not belong to a part of investors are hard to understand to the enterprise,so enterprises need to auditors to audit the financial information,and issue the audit report,and let the public fully understand the financial situation of enterprises,in order to decide whether to invest.However,in recent years,audit failures occur frequently,and audit reports issued by accounting firms do not reflect the real financial situation of enterprises.There are many cases of fraud in enterprises,such as inflated profits,inflated revenues,hidden costs and other fraudulent operations,but the CPA did not find that it caused losses to many investors,and the credibility and reliability of the firm is decreasing.How to improve the quality of audit has become a top priority for accounting firms.This paper selects the audit failure event ofLZL co.,ltd.by RH accounting firm in recent years.Through persistent development,is now in the country is the RH of certified public accountants,in the past two years,"news",firms have received the China securities supervision commission and other regulators fined,including fines and markets,caused great economic and reputation losses to the firm.LZL co.,ltd.was found in the IPO listing process of financial fraud,causing a bad impact on society.This paper is intended to contain the following parts: the first part is the introduction,which elaborates the research background and significance of this paper,and reviews and sorts out the domestic and foreign literature.The second part is the case description,which mainly introduces the enterprise situation of RH accounting firm and LZL co.,LTD.,introduces the whole process of this audit failure event and the specific performance of RH accounting firm in this audit failure.The third part is the case study.Firstly,the theory and concept based on the case study are described.The last part is the conclusion and Suggestions.The conclusion is drawn through the previous analysis,and corresponding Suggestions are given according to the reasons of audit failure.