Research On The Failure Of Huazegunie Audit

With the deepening of reform and opening up,the construction and development of the socialist market economy with Chinese characteristics has been highly valued by the Party Central Committee and the government.China's multi-level capital market system is gradually established,and many companies will raise funds through the capital market to promote the development of the company.In the process of development,people gradually realize the importance of capital market to resource allocation.It is more and more common for shareholders to use their idle funds to resell shares to obtain profits.When making investment decisions,shareholders use the most information is the financial data of the investee,and look at the situation through data.However,the credibility of financial data transmitted by some listed companies is insufficient,which seriously damages the vital interests of the majority of shareholders.In order to reduce the occurrence of such problems,the private audit business has gradually developed and expanded.This independent assurance service plays an irreplaceable role in improving the quality of accounting information,improving the level of investment decision-making,maintaining the stability of the financial system and so on.However,at present,audit failure cases occur frequently,which reflects that the quality of some domestic accounting firms is worrying,and there is still a lot of room for improvement.Ruihua used to be the leader of domestic accounting firms and the guide of other domestic accounting firms.In recent years,the development trend of Ruihua has been slow,and the number of audit failure cases has increased.Although the number of audit failure events has a positive change with the number of business undertaken by the firm,this change of Ruihua is unusual.In essence,this is the embodiment of the firm's failure to seriously implement the "quality oriented" quality control policy.Taking the classic case of Huaze cobalt nickel audit failure in Shaanxi Branch of Ruihua as an example,this paper discusses the reasons for the failure.Firstly,the accountants did not maintain their due professional doubt subjectively;secondly,some audit procedures were superficial and did not obtain sufficient and appropriate audit evidence;thirdly,the project team did not audit related parties Finally,the quality control system of the firm has not been effectively implemented.After excavating the causes of failure,the author then puts forward targeted solutions,and interprets and lists the specific operation contents of each solution,which is a practical sign of the article.In the solution to the failure of quality control,this paper attempts to put forward a brand-new point of view,that is,the best way to ensure the excellent quality control work of the accounting firm is for the quality controller to strictly follow the "quality control criteria" on the basis of grasping the "basic criteria of assurance business".It is hoped that the foreshadowing lessons summarized in this paper can warn other accounting firms like Ruihua(with profound and large scale)that they should make appropriate adjustments while developing rapidly,so as to ensure that they adhere to the original intention of quality oriented business.I hope that this paper can provide reference for the accounting firms in the future how to prevent audit failure in the audit of listed companies,so as to promote the audit quality and efficiency,and then maintain the stability of the securities market and promote the entire national economy as a whole forward and healthy development.Of course,there are also shortcomings in this paper,the shortcomings will be the findings of future research,the end of the paper to elaborate on this.