Discussion On The Causes And Countermeasures Of Continuous Audit Failure

In recent years,financial fraud and audit failure cases have occurred continuously.The CSRC has penalized the responsible parties for audit failure cases every year.The issue of audit failure has received wide attention from all walks of life.This article has compiled the notice of punishment of the CSRC in the past decade.In the past ten years,20 accounting firms have been punished,and 7 of them have been punished many times,accounting for 35%of the total number of certified accounting firms.After Lianda successfully punished the black list on the Shanghai Securities Regulatory Commission and sentenced it to seven times in nine years,BDO was sentenced to four consecutive penalties in the three years from 2016 to 2018.The auditing firm failed to "continue to ban".From the perspective of the long-term development of the audit industry,it is necessary to analyze in depth the reasons for the multiple punishments of accounting firms,and to provide suggestions and countermeasures for preventing audit failures.Based on this,the research problem of this paper is to analyze the reasons for the failure of the four consecutive audits of BDO from the perspectives of auditing entities(accounting firms and certified public accountants),auditing objects(audited entities)and auditing supervision,and propose prevention of audit failure.Specific recommendations and countermeasures to improve audit quality.The research ideas of this paper are as follows:Firstly,the research background and significance of this paper are introduced.The research results of domestic and foreign scholars on the analysis of failure reasons and preventive measures are summarized.The definition of "audit failure" and its "audit risk" are explained.The difference between "business failure" and the analysis of audit failure by principal-agent theory,rational economic man theory and control theory.Secondly,the statistics of the CSRC’s penalties for corporate fraud and audit failures were compiled in the past decade,and the disclosure in the announcement was analyzed.The reasons for the punishment of the auditor and the object and the supervision status of the supervisors,summed up the characteristics of China’s audit failure;once again,introduced the four consecutive audits of the company’s*ST Guoyao,Jinya Technology,Kanghua Agriculture and Shanghai DZH cases.In the case of failure,the causes of the failure of continuous auditing were analyzed from the perspectives of four fraud companies,BDO and CPA,and the regulatory environment.The subsequent impact of audit failure on the three parties was discussed.Finally,according to the above analysis,from the audit From the perspective of the prevention of audit failure,targeted recommendations and countermeasures.The research methods in this paper are:literature induction and case study methods,combined with literature and theoretical knowledge to comprehensively analyze case problems.The characteristic of this paper is that it has carried out a complete audit failure case analysis for BDO,and proposed specific preventive measures from the perspective of audited enterprises,accounting firms,certified public accountants and auditing supervision to promote the healthy and orderly development of the auditing industry.