A Case Study On Audit Failure Of PH Accounting Firm

With the development of economy and society,the emerging industries are flourishing,and the development of enterprises is more and more towards the direction of technology,refinement and specialization.In order to encourage the financing development of small and medium-sized enterprises,to improve the capital market system and enhance the inclusiveness of the capital market,the state has gradually set up new financing channels such as the Third board,Science and Technology Shares,promoting a large number of emerging technology industries and other potential listed financing.The audit industry has been boosted by the increasing demand of small and medium-sized enterprises for listing and financing,and many accounting networks and associations audit businesses have proliferated,however,the unsound management of small and medium-sized enterprises also makes more and more demands on the audit work of accounting networks and associations,which poses greater challenges to the auditors.The "high-tech" characteristics of the emerging science and technology industry have increased the industry risks and audit difficulties in the audit field,which is prone to risks.The paper used the study method to introduce the audit process of CM Enterprise.Based on the theory of Information Asymmetry,Risk-Oriented Audit Theory and Audit Insurance Theory and other relevant theories,the paper analyzes the audit risk existing in the audit process of PH Accounting Firm,and explores the causes of non-identified audit risk,and then draw case enlightenment.At last,the paper standing in the audit risk prevention angle,puts forward the solution countermeasures,including strengthening risk-oriented audit awareness,strengthening the internal construction of the Accounting Firm,improving the professional quality of auditors,and designing and adopting scientific and effective further audit procedures.Through the above measures,to enhance the ability of auditors to practice,enhance the credibility of the Accounting Firm,and maintain the credibility of the audit industry image.The last part is the conclusion,which summarizes the thesis and expounds the limitations of the research.This paper,based on the literature on audit risk of scholars at home and abroad,through the case study of audit of CM Enterprise,puts forward the measures to prevent audit risk from the risk-oriented audit perspective,the aim is to provide risk prevention and control reference for other Accounting Firms and guide the audit industry to develop healthily.