Definition Of Audit Responsibility Of Certified Public Accountants

In recent years,fraudulent auditing cases in the capital market have been frequent.Whether the CPA colluded with the audited entity or the CPA did not understand the intrigues of the audited entity,the impact of corporate fraud on the society was extremely bad,and the CSRC imposed stricter penalties on such incidents.This has also led to more concerns about the definition of CPA audit responsibility.The perception of audit responsibility by the public and certified public accountants is biased.On the one hand,this kind of deviation will lead some CPAs to fail to fulfill the “Diligent and responsible” required by the auditing standards in practice;on the other hand,it will make the CPA feel “squatting” after being punished by the regulatory authorities.Based on the relevant theories of audit responsibility,this paper analyzes the failure of the auditing of CPA fraud in China by the case of Xinyongzhonghe Certified Public Accountants' failure to audit the “Dengyun Shares”,and discusses the problems and suggestions.This paper has seven parts.The first part discusses the research background and significance.On this basis,a literature review is conducted.By reviewing the previous literature,the definition of audit responsibility is reviewed and commented.The second part introduces the concept of audit responsibility and audit risk.It mainly includes the professional responsibility and legal responsibility of certified public accountants,audit risk and reasonable assurance.The third part briefly introduces the case that xinyong zhonghe accounting firm failed in the audit of "dengyun share",and then the fourth part discusses the disagreement between the definition of audit responsibility of xinyong zhonghe in the administrative review stage and the CSRC.These include not being diligent and conscientious,not maintaining due professional care,etc.The fifth part analyzes the causes of the dispute over the definition of audit responsibility in the case of audit failure by xinyong zhonghe.This paper discusses the punishment basis of SFC in the definition of audit responsibility and the assurance of reasonable assurance.The sixth part puts forward some Suggestions on the problems existing in the definition of audit responsibility of CPA industry in China.It mainly gives Suggestions from four aspects: certified public accountants,accounting firms,industry associations and regulatory departments.The last part is the conclusion and prospect.