Research On The Failure Of Audit Based On The Case Of Huaiji Dengyun Auto-parts Company Limited Audit By ShineWing

The scale of capital market is expanding constantly,and people have higher quality requirements for accounting information in recent years.As a result,the demand for auditing is increasing.However,the financial fraud of listed companies tends to be hidden and diversified,which brings risks to the interests of investors and users of statements,and also brings great challenges to the work of certified public accountants.With the increase of audit litigation cases,the public trust in the audit industry has also declined.In this context,it is very important to improve the ability of audit practitioners to identify and prevent risks,to improve the safety factor of the industry,and to prevent the failure of audit work.From the perspective of certified public accountants,this paper defines the concept of audit failure by means of literature analysis and case study.Define that audit failure occurs when the auditor issues an incorrect audit opinion because it falied to comply with the requirements of auditing standard.The case of Dengyun Share Audit,which was investigated by the SFC,is selected for specific analysis.Through the study of the IPO and the annual report audit of 2013-2014 of Dengyun Shares,it is found that the main reasons for audit failure are:(1)not maintaining reasonable professional suspicion;(2)not strictly enforcing audit procedures At the same time,according to the modern risk-oriented audit theory,specific countermeasures are put forward for the above reasons,which can be summarized as follows:(1)Auditors should pay attention to risk identification and prevention,strictly implement audit procedures,rationally use analysis procedures,and have a high degree of professional skepticism;(2)Accounting firms should strengthen the implementation of quality control related systems and rationally distribute appointments.Personnel should make proper use of the work of experts;(3)Increase the penalties for violations,overawe the market environment,strengthen industry supervision in the industry,and sort out the industry and industry collaborative supervision system.