Research On The Causes Of Audit Failure Of Accounting Firms And Preventive Measures

With the development of the market economy,the audit industry has sprung up li ke a mushroom,and the number of certified public accountants and audit firms has al so increased rapidly.At present,China's optimization of the certified public accountant industry is aimed at improving the institutional arrangements for certified public acco untants and establishing a sound system for preventing audit failures.Even under man y studies,the audit work of China's certified public accountant industry has encountere d many problems,and audit failures frequently occur.The major audit failures of Kan g Dexin and Kangmei Pharmaceutical seriously damaged the industry image of China's certified public accountants,and caused people's attention to the auditing industry and corporate financial fraud,especially the financial fraud of listed companies.Although experts and scholars at home and abroad have made detailed studies an d discussions on audit failures before,and formed a relatively complete theoretical sys tem,the more and more serious audit failure cases in recent years also show that ther e may be imperfections in previous studies..This article takes Kangde's new audit fa ilure cases as the starting point,and on the premise of combing the previous research results,it tries to find a new perspective to study why audit failure cases occur freq uently,and then proposes a series of targeted measures.When discussing the reasons f or audit failure,the measures to prevent audit failure also considered the reform direct ion of related institutions and mechanisms in the context of the new era and new sec urities law,and it has certain value for improving the theoretical system of audit failu re.By selecting a case analysis method,the causes,consequences and countermeasures of the audit failure of listed companies are analyzed.Based on reading a large amou nt of literature and combining with relevant theoretical research,the author comprehen sively analyzes the audit failures from the audit subject and the audited entity.Reason s and results,from the perspective of certified public accountants,accountants professi ons,regulatory agencies,put forward measures to prevent audit failures.