Case Study On Audit Failure Of ZhongXingHua Certified Public Accountants LLP To BoYuan Investment

The healthy operation of the capital market requires fair,just and open information,in which accounting information is used and trusted by investors.The CPA auditing industry is engaged in the verification of financial statements to improve the value of accounting information in a way that ensures the credibility of accounting information.As the "economic guardian" of the capital market,the CPA plays an important role in safeguarding the authenticity of accounting information in the capital market and maintaining the order of the capital market.It is closely related to the development of the securities market and has been highly anticipated by the public investment public.However,the audit work is heavy and complicated,especially in the recent years,the large-scale listed companies have diversified and internationalized businesses,because listed companies often lack integrity,which affects the true and fair expression of accounting information,making accounting information review work is full of hardships,a little careless,and issuing false audit opinions,it will mislead investors.If the auditor is slightly careless and issues a wrong audit opinion,it will mislead investors.Love well,whip well.The majority of market participants are quite dissatisfied with the repeated audit failures of the CPA audit industry.How to improve audit quality and reduce the probability of audit failure has become an urgent problem for the CPA audit industry.Based on the information theory,this paper summarizes the relevant literature on audit failure,and adopts the literature research method and case analysis method to study the case of ZhongXingHua Certified Public Accountants LLP audit failure of Boyuan Investment.Through analysis,it was found that Zhongxinghua had multipledereliction of duty in the audit process of Boyuan Investment,such as the risk assessment procedure was not in place,the lack of necessary further audit procedures,the lack of control over the correspondence and the unwarranted implementation of the audit procedures.Then,aiming at the problems in the above audit process,this paper analyses and summarizes the deep-seated reasons for such problems as the following: Firstly,the lack of professional ethics of Certified Public Accountants causes audit failure,which is mainly reflected in the deficiencies of professional competence and independence of certified public accountants.Secondly,Zhongxinghua's business acceptance control,charging control and work script control have serious flaws.The lack of quality control of accounting firms has increased the probability of audit failure.Finally,the imperfection of audit practice environment is also one of the reasons for audit failure.The low cost of violations by CPAs and accounting firms and the inadequate supervision of the industry prompt frequent audit failure.In view of the above reasons for audit failure,this paper puts forward some countermeasures to prevent audit failure.CPAs should improve their professional competence and independence.Accounting firms should be prudent in undertaking audit business,improve the negotiation ability of audit fees,and strengthen the review of audit working papers.In terms of auditing practice environment,we should increase the penalties for CPAs and accounting firms who failed in auditing,and improve the market supervision mechanism.It is hoped that the analysis and suggestions in this paper can provide reference for the prevention of audit failure,and it can be used as reference for other CPAs and accounting...