| Since china’s reform and opening up,market economy has become more prosperous with the continuous development of the capital market as a whole,and certified public accountants audit has become a control mechanism to ensure efficient operation of market economy in our country.But at the same time,the enterprise financial fraud and audit failure cases have serious influences on the development of market economy and once exposed,the aftermath of the overall operations of the enterprise will become increasingly difficult,even maintain eventually led to the bankruptcy liquidation.At the same time,frequent outbreaks of corporate financial fraud and audit failure cases will also make the public more and more distrust of the CPA audit industry,these adverse factors may lead to the abnormal development of china’s audit industry.Faced with such situation,selecting Tianfeng energy-saving audit failure case as a starting point,only by analyzing the factors affecting audit failure and putting forward corresponding preventive measures,the audit industry of our country can develop healthily and the capital market of our country become more prosperous.This paper adopts the method of combining theory with the case to make a comprehensive analysis of audit failure,defines the implication of audit failure and three audit theories supporting audit failure.Based on the Tianfeng energy-saving audit failure case,the reasons for audit failure are obtained from the two aspects of audit subjects and external environment.Finally,some suggestions are put forward to prevent audit failure according to the corresponding reasons.The analysis shows that: the main reasons for the audit: the CPA do not deeply understand the comprehensive situation of the client industry,the CPA do not maintain the necessary professional ability,the CPA do not maintain rigorous working attitude,the internal quality control of the accounting firm is defective;External audit environment factors: the government policy supervision is not strict,the audit market competition is not formal,will have some impact on it,is also the main cause of failure.Finally,on the basis of the summary to the whole case,some rectification measures are put forward from two aspects of the audit subject,external environment and mainly include: strengthen the professional quality of relevant certified public accountants,guarantee audit independence of relevant certified public accountants and improve the firm’s quality control system,improve the audit practice in our country environment,increase the phenomenon of violation of certified public accountants and due to internal staff disciplinary penalties and management.Through the study of Tianfeng energy-saving audit failure cases,this paper summarizes the influencing factors of audit failure of accounting firms,and puts forward the preventive countermeasures of audit risk,which provides reference for accounting firms to deal with audit failure,and has certain guiding significance. |
