A Case Study On Audit Failure And Re-f Ailure Of L Accounting Firm

CPA audit is the external supervision and governance mechanism of enterprise ma nagement.It examines the authenticity and fairness of enterprise financial statements a nd the implementation of national laws and regulations.Audit quality reflects the effec t of CPA auditing.High-quality auditing can help enterprises find problems in business management activities and manage them effectively,help users of financial statements to make correct decisions,safeguard the interests of shareholders,investors and the p ublic,as well as the stability of market economic order.At the same time,it can imp rove the auditing reputation of accounting firms and make them better.Expansion of business and development.China's CPA system was restored in the 1980 s.With the d evelopment of market economy,people pay more and more attention to CPA audit an d its quality.In recent years,financial fraud has occurred frequently.As an "economic police",the registered accountants and their accounting firms have been punished by the CSRC for not being diligent in their audit work and issuing inappropriate audit op inions.At the same time,the number of registered accountants and accounting firms t hat have been punished for many times has been increasing.The frequent auditing fail ures and repeated auditing failures of the same accounting firm not only damage the i nterests of the public,cause huge economic losses,disrupt the order of market econo my,but also make people lose trust in accounting firms and certified public accountan ts.Therefore,it is of great practical significance to analyze the causes of audit failure and re-failure,and to explore the countermeasures to prevent audit failure and re-fail ure.This paper chooses the punishment data of the SFC from 2008 to 2018 and colla tes them,and analyses the current situation of audit failure and re-failure in China.It is found that L accounting firm was punished by the SFC for suspending new securi ties business and rectifying it within a time limit in 2016 because of successive auditi ng failures.After rectification,L accounting firm failed again in auditing.A joint anno uncement issued by the Ministry of Finance and the SFC raised the problems of quali ty control and integrated management of L accounting firm,which is its problem.An important cause of audit failure and re-failure.This paper adopts the method of literat ure research and case analysis to analyze the causes of audit failures and re-failures fr om three aspects: auditing institutions and auditors,auditees and external environment.It also puts forward countermeasures to prevent audit failures and re-failures,and the n expands them.It expects that the problems of audit failures and re-failures will be improved and promoted.Enter the benign development of audit industry.