A Case Study Of *ST Yabo Audit Failure Based On Risk Orientation

With the continuous development of social economy and the gradual maturity of the capital market,economic activities and business have become more and more complex,and the audit mode is also constantly updated and changed.The traditional risk-oriented audit has been unable to adapt to the needs of the new environment.Therefore,in order to ensure that the audit reports provided by CPA continue to play an important role,modern risk-oriented audit came into being.Although the commonly used audit model is modern risk-oriented,financial frauds have occurred frequently in recent years.In this context,this paper conducts research by looking up a large number of domestic and foreign relevant audit literature,and conducts research and analysis on modern risk-oriented audit combined with current real specific cases,so as to further explore how to better play the role of modern risk-oriented audit model and effectively prevent audit failure.The research object of this article is *ST Yabo,and studies it’s audit failure cases from the perspective of Zhonghua CPA Firm.Firstly,it introduces the audit model and risk-oriented audit process,defines the concept of audit failure,and uses the relevant four theories as the theoretical basis of the case.Then,introduces the basic information of Zhonghua CPA Firm and *ST Yabo,Zhonghua CPA Firm audit *ST Yabo overall situation,*ST Yabo financial fraud.Then,combined with the risk-oriented audit process,the problems existing in each audit stage of Zhonghua CPA Firm are analyzed.Due to Zhonghua CPA Firm’ s acceptance of *ST Yabo audit business commission stage,not fully understand the cross-border business and special risks of enterprises,leading to high early audit risk coefficient;Secondly,in the stage of identification and evaluation of audit risk,the strategic risk of *ST Yabo is analyzed from the four aspects of macro environment,industry environment,internal environment and business model,and the operational risk of *ST Yabo is analyzed from the four aspects of supply chain,production,sales and internal governance.In summary,the major misstatement risks of *ST Yabo in its financial statement level and identification level are analyzed and evaluated,and the problems existing in the evaluation and inspection risk are further pointed out.Then,in response to the audit risk stage,by checking the accounting subjects with significant misstatement risks,we find anomalies in the accounts receivable,inventory,operating income and cash flow of enterprises,and point out the deficiencies in the risk audit procedures of Zhonghua CPA Firm.Finally,in the audit report stage did not do a good job of quality control review to form the appropriate audit opinion,resulting in audit failure.Finally,based on the analysis of the problems existing in the above four stages,this paper puts forward suggestions for risk-oriented audit optimization from each stage.Based on the process of risk-oriented audit,this article studies the problems existing in the audit *ST Yabo process,summarizes the causes of audit failure,and puts forward suggestions for improvement and optimization.It is hoped that this paper can provide a case reference for firms to use modern risk-oriented audit in the future,so as to improve the risk awareness of auditors and the quality of audit business,reduce the occurrence of audit failure,cause the attention of enterprises,and reduce the phenomenon of financial fraud.