Research On Audit Failure Based On The Case Of ZH Certified Public Accountants LLP Auditing YT Co.,Ltd

In recent years,with the transformation of China's economy,the overall situation has been improved unprecedentedly.Enterprises increasingly need audit in order to prove the authenticity of financial information,and the public pay more and more attention to the quality of audit services.Frequent audit failures will make the credibility of financial statements and audit reports in the market plummet,which will not only affect the firm to create a serious and responsible image of integrity,but also go against the stable and healthy development of the securities market.Therefore,it is very important to strengthen the problem identification ability of accountants and firms in the audit process and build a systematic and perfect audit failure prevention system.Combining theories such as process quality control,limited rationality and audit demand insurance hypothesis,taking charts as tools,and adopting research methods such as induction method,ratio method and trend analysis method,the paper compares YT company's financial data in its statements.The paper identifies the audit failure performance such as the failure to discover the false increase of income and profit,the failure to discover the false cash flow and the failure to make reasonable judgment on the changes of relevant assets,and analyzes the adverse impact of the audit failure on accountants,the accounting firms,the domestic and foreign markets.Next,the paper analyzes the deep reasons of audit failure from the perspectives of accounting firms,project auditors,professional environment and the limitations of overseas business audit.Finally,the paper proposes corresponding countermeasures in the aspects of paying attention to customers' business environment,strengthening pre-evaluation,strengthening quality control of key links,perfecting audit review system,perfecting internal system of accounting firms,establishing internal quality-oriented culture,strengthening professional ethics construction and professional knowledge training of auditors,and perfecting existing audit mechanism and overseas audit process.The analysis of audit failure in combination with specific cases can strengthen the audit function of accounting firms and certified public accountants,promote the transformation of audit quality control from post-event to pre-event and in-event,which plays a positive role in reducing the impact scope of audit failure,avoiding the recurrence of bad cases,and protecting the legitimate interests of various market participants.