The Study Analysis On Kanghua Agricultural Audit Failure

The research on the audit of agricultural enterprises has always been an important topic concerned by the audit community.After the occurrence of the kanghua agricultural audit failure case,the audit community and the society launched a wide discussion on relevant issues.The large amount of fake bank deposits,inflated accounts receivable,fictitious operating income,and deliberate fabrication of audit procedures have made the society seriously doubt the quality of audit work of lixin accounting firm,the leading domestic firm,and even begin to doubt the existence value of audit profession.Based on the characteristics of the agricultural enterprise audit,from the general focus of audit failure case study to guarantee agricultural audit failure case study of lixin accounting firms practicing quality and related key auditors calendar year on overall analysis of performance of lixin accounting firm before accepting enterprise audit service contract and studied the evaluation of audit risk prediction,Lixin accounting firm after the audit service contracts to guarantee agricultural comprehensive assessment of internal control risk,guarantee agricultural key audit matters,the arrangement of the audit plan and key auditors,audit plan of key items in the concrete implementation of the audit program implementation,audit of the key issues of accounting methods disputes and communication,the formation of the audit opinion and firm implementation of the internal audit quality control system and so on conduct the thorough research to the audit process,Came to guarantee agricultural audit results failed to find the inflated bank deposits,failed to find the inflated revenue accounts receivable,failed to find fiction,the reason of audit procedures to fiction,lixin certified public accountants to guarantee that shares of the company's internal control system of risk assessment,audit planning and implementation,the determination of audit method,audit results,kernel,the firm's internal control system of the execution effect of huge problems,which eventually led to guarantee agricultural audit failure.In combination with relevant problems,this thesis,from the perspective of certified public accountants,accounting firms and regulatory agencies,respectively,proposes Suggestions for relevant parties to avoid the occurrence of similar cases of kanghua agricultural audit failure.We should pay attention to the related parties and identify the internal control risks of the audited entity.To maintain independence and strengthen professional ethics requirements;We should strictly enforce the firm's internal control system and standardize auditing.Secondly,for accounting firms,it is necessary to strengthen the risk assessment before undertaking the audit business and reduce the audit risk.We should strengthen the talent team construction of the firm and pay attention to the professional ethics of the auditors.We should strengthen the implementation of the internal control system of the firm and strengthen the supervision of the firm level.We should strengthen the professional auditing of the firm industry and accumulate auditing experience based on the characteristics of the industry.Finally,for the regulatory agencies,we should strengthen and improve the legislation on audit procedures to make the provisions of relevant laws and regulations more specific.To strengthen the industry requirements of certified public accountants and strengthen professional ethics.We should strengthen the penalties for audit failures and eliminate false reports.We should strengthen the requirements of the governance structure of listed companies and strengthen the supervision of the internal control system of enterprises.