Study On The Audit Failure Of DH Certified Public Accountants

With the continuous development of China's economy,the audit profession of certified public accountants is also gradually growing.CPA audit,as the backbone of social audit,should have escorted the development of society and economy,However,in recent years,audit failure cases have occurred from time to time,which not only affected the orderly operation of the capital market to a certain extent,but also raised doubts about the credibility of CPA audits.Because the audit failure is judged based on the audit report issued at the end,while questioning the credibility of the CPA audit,people also have doubts about the professional competence of the CPA.Therefore,it is urgent to study how to prevent and contain audit failures.This article starts with the background,purpose,and significance of the topic,and sorts out the results of domestic and foreign research audit failures.Secondly,it defines conceptually the audit of certified public accountants and audit failure,and analyzes related theories such as audit conflict theory,principal-agent theory,and rational economic man.Briefly introduce the audit failure of DH Accounting Firm again,discuss the two cases of audit failure of DH Accounting Firm respectively,and analyze their similarities and differences;at the same time,the relevant information on the 2001-2019 published by the SFC official website The punishment announcement of the CPA audit failure is analyzed,the overall punishment frequency,punishment method and punishment amount of the CPA industry are counted,and the harm caused by the audit failure is discussed.Then analyze the reasons for the failure of DH accounting firm audit from the aspects of the lack of pre-audit risk assessment,the lack of professional competence and responsibility of certified public accountants,the lack of audit procedures and professional suspicions,and the inadequacy of quality control review of the firm.Finally,from the perspective of the cause analysis,from the perspective of the industry,the enlightenment of strengthening the risk assessment before undertaking audit business,improving the professional competence and responsibility of certified public accountants,strictly implementing audit procedures,maintaining due professional suspicion,and strict quality control review are drawn.