A Case Study On The Audit Failure Of Certified Public Accountants In China

The financial data and related information of listed companies play an important role in the investment decision of investors and the economic decision of management.Certified public accountants are the only independent third party who can give auditing opinions on financial statements.Their high-quality auditing helps to enhance the objectivity of financial information in the capital market and reduce the risk of financial information.However,the occurrence of audit failure not only damages the interests of stakeholders,but also has a huge impact on the integrity of the CPA industry.Therefore,it is of great research significance to improve audit quality and prevent audit failure.In this paper,through the China securities regulatory commission arrangement from 2001 to 2017 of certified public accountants and signature CPA administrative punishment announcement,using descriptive statistical analysis method,from the audit standards,audit failure behavior forms,fraud and audit failure angles to explore the present situation of certified public accountants audit failure in our country,found in the letter,certificate for certified public accountants audit of the project such as,revenues,costs and inventory on the most prone to audit failure.Lunt of vibration to produce an IPO audit failure case as an example,based on risk-oriented auditing standards and game analysis,the vibration lunt fraud production defect,certified public accountants audit program and audit collusion behavior analysis,found the main reason of audit failure is a major defect,audit procedures exist and regulation,the rising cost of violation is important for preventing audit failure.Finally,it puts forward the preventive measures of audit failure from the Angle of laws and regulations,accounting firms and supervision departments.