Study On The Failure Of Audit In The Perspective Of Conflict Theory

The third-party audit of certified public accountants plays an important role in the financial market.Audit is of great significance to ensure the normal operation of capital market.However,due to the influence of many factors,there have been a large number of audit failure cases in China,which not only caused great losses to investors,but also led to doubts about the ability and function of certifried public accountants and audit work.Since the new century,The CSRC has begun to strengthen the investigation and punishment of audit failure,but at the same time,audit failure cases show more and more serious characteristics,which makes people have to start thinking about whether there are deeper reasons leading to audit failure.Audit failure is now a matter of great concern to investors.The relationship between the audited unit and the audit firm is treacherous.All kinds of ways of analyzing audit failure have emerged one after another,but they still can’t find the root of it.In this paper,the theory of audit conflict is used as the theoretical basis,and the Np audit hedging model is used to study and design.Through discussion and optimization,we can find out the problem of audit failure in our country and put forward some suggestions.The selected cases are one of 28 on the gem.Geeya Technology,which caused a sensation in 2018,has violated five audit standards in the penalties disclosed by the CSRC for nearly eight years.The highest back frequency of 5 items,so choose Geeya Technology as a representative of the industry case,can be adapted to the industry-wide optimization conclusions.It is hoped that the improved N&P model can provide a valuable method for the future research on audit failure.This paper defines the definition of audit failure and points out that whether the auditor fully complies with the audit standards is the fundamental basis for determining the success or failure of the audit.Understand the cause and impact of audit failure.This paper introduces the source and significance of audit conflict model.Cooperate with the relevant literature to make the theoretical support of this paper.Next by studying the administrative punishment statistical analysis of the CSRC in the last 8 years using the data statistics and stages to study the situation of audit failure cases in China and summarize the characteristics of the cases.Select Geeya science case to carry on the analysis,in the course of the analysis,proceed from the angle of the interest conflict between the two sides of the audit business,make the optimization and improvement with the nup model as the embryonic form,and consider the subject being examined.Taking into account the constraints and power-driven,audit-related and power-driven enterprises,this paper constructs a conflict model for analyzing and judging audit failures,enumerates all kinds of factors,and finally carries on game analysis,which provides methodological support for case studies.Finally,according to the conclusion of the game,this paper analyzes the factors in the game process,and puts forward some suggestions on how to avoid the audit failure from five aspects:the audited unit,the accountant,the firm,the external environment and the system.