Research On The Audit Failure Of Backdoor Listing

The report of the 19 th national congress of the communist party of China puts forward higher requirements for China's audit work,which has been noticed by the public.With the rapid development of our country's economy,enterprises need more and more capital to survive and develop.Therefore,enterprises are constantly seeking for financing channels.Backdoor listing has gradually become an important financing channel for enterprises due to its low time cost and convenient listing process.Follow as a result,the number of certified public accountant in the backdoor listing of audit business growing,however in the huge economic interests,driven by some companies themselves short of securities regulatory requirements,in order to achieve the goal of backdoor listings,desperate to implement financial fraud,and thus,certified public accountants audit failure cases.Damage the interests of the majority of investors,great harm to the reputation of the audit industry.So how to avoid the audit failure of backdoor listing is the focus of audit industry research.Firstly,this paper analyzes and summarizes the theoretical research results related to the backdoor listing and audit failure in China,and theoretically defines the backdoor listing and audit failure.Secondly,it USES the modern risk-oriented audit theory to theoretically analyze the reasons for the audit failure of the backdoor listing of certified public accountants.Second,backdoor listings review reanda cpas to nine good group audit failure case,nine good group shell is analyzed based on GONE theory of financial fraud motivation,Summarized the means of financial fraud of Jiuhao Group.and based on the theory of modern risk-oriented,from the perspectives of firms and certified public accountants reanda cpas in the execution of nine good group faults existing in the audit process: Reanda cpas certified public accountants and the certified public accountant when undertaking backdoor listings audit business attitude rashly,risk identification and evaluation stages failed to fully understand the shell internal and external environment,so that the thorough assessment of misstatement risk,risk coping stage not to design special program of significant risk,the lack of strict audit program execution,reanda cpas certified public accountants perform business quality control is not strict.Finally from the perspective of certified public accountants and certified public accountants to prevent backdoor listings audit failure put forward countermeasures and Suggestions: firms and certified public accountants should be careful to undertake backdoor listings audit services,fully understand the shell side unit and its environment in order to fully evaluate the potential risks,and design and strictly carry out targeted auditing procedures,certified public accountants should strengthen the construction of business quality control system.