A Case Study Of Ruihua Certified Public Accountants' Failed Audit Of Kang Dexin

In recent years,the CSRC has repeatedly publicly disclosed regulations on various administrative penalties for audit failures of accounting firms and audited entities due to mismanagement,violations of laws and regulations.These illegal activities have serious adverse consequences for the socialist market economy,and have also made the public doubt the role of the "gatekeeper" of the market economy of the accounting firm industry.In this context,it is important to study the cases of audit failures that have been occurring in recent years.In the form of a case,this paper analyzes the failure of the audit of Concord by Ruihua Certified Public Accountants to analyze the inflated operating income of manufacturing enterprises represented by Concord,such as inflated profits,fraudulent monetary and financial transactions,and related party transactions.Ways of operation of non-operating embezzlement of monetary funds by major shareholders,analyze the reasons for the failure of Ruihua Certified Public Accountants,and propose a series of recommendations to strengthen the audit quality of accounting firms,increase the attention of regulatory agencies,and promote the health of the development of social market.At the background and significance of the topic part,this article firstly reads the literature of previous studies about audit failure,summarizes and combs,and understands the previous research methods and results of audit failure.Secondly,it expatiates on the manifestation of audit failure,and explains the theory of audit conflict and risk-oriented theory.In the third part of this article,the case of Kant's new audit failure is explained in detail,the situation of Ruihua Certified Public Accountants and Kant's new company is explained,and the methods and methods of Kant's new financial fraud are pointed out.In the fourth part,the reasons for the failure of the audit are analyzed from various aspects of Ruihua Certified Public Accountants,the audit project team and the audited unit,and the professional environment and supervision.Finally,according to the problems I found and the current status of the audit industry,from the perspective of accounting firms,auditors,audited entities and the regulatory environment,corresponding measures to prevent such audit failures are proposed.Accounting firms should improve the risk assessment system,and auditors should ensure the quality of audit work,be cautious and diligent with professional skepticism,and strictly control the quality of audit reports.At the same time,the audited unit should proceed from the company's long-term interests and pay attention to corporate governance.Supervisory agencies should strengthen the rectification of the atmosphere of the audit industry and improve relevant laws and regulations.