Research On Audit Failure Based On Audit Evidence Perspective

In adherence to the overall strategy of promoting high-quality economic development,the quality of the capital market cannot be ignored.As the supervisor of the capital market,the certified public accountant's high-quality auditing behavior will escort the high-quality development of the capital market.The low rate of audit failure is the core performance of high-quality audits.Audit is a systematic process of obtaining and evaluating audit evidence.Audit evidence,as the cornerstone of audit opinions,its quality will ultimately affect the quality of audit reports,and its importance is self-evident.Most scholars use whether the CPA compliance with auditing standards to perform audits as the judgment standard for audit failure.At the same time,predecessors found in the study of audit failure cases that the frequency of CPAs violated the audit evidence standards was the highest.To sum up,this article believes that if the perspective of audit evidence is used as the starting point to study audit failure,it should have positive significance in preventing audit failure.This article uses literature research,descriptive statistics and case studies to study audit failure.After combing through the research results on audit evidence and audit failure,it is found that the results of studying audit failure based on audit evidence are limited.Based on this,the research direction of this article is proposed,which is the study of audit failure based on the perspective of audit evidence.Focusing on this basic point,this article first defines key concepts such as the connotation and nature of audit evidence based on evidence theory and other theoretical foundations,and pave the way for related basic theories for the following discussion.Then,based on the audit evidence practice standards,a statistical analysis of the 2016-2020 audit failure penalty announcement was carried out.In this part,on the one hand,it summarizes the requirements of auditing practice standards for audit evidence,and defines the auditing evidence practice standards.On the other hand,according to the results of statistical analysis,the characteristics of audit failure based on audit evidence practice standards are obtained.For example,the inadequate and inappropriate audit evidence obtained is the the common feature of audit failure,and lack of practice suspicion in the evaluation of evidence is the root cause of audit failure.Subsequently,this article takes the cases with the most frequent violations of audit evidence standards-Yabaite's audit failure as an the case study objects,and analyzes the reasons for its audit failure from the three stages of the CPA's collection,evaluation and recording of audit evidence.For example,When the CPA evaluates the evidence,the evaluation of the prove power of the audit evidence is not in place,and failing to record the process of professional judgment when recording evidence.Finally,based on the aforementioned three parts,this article proposes countermeasures to prevent audit failures based on the perspective of audit evidence.For example,the absolute prove power of the evidence should be considered when evaluating the evidence.Researching audit failure based on the perspective of audit evidence is the innovation of this article.In order to make this perspective deeper,on the one hand,i try to discuss the connotation and nature of audit evidence more deeply by drawing on and integrating the theoretical knowledge of evidence science and other disciplines,so as to provide a new perspective for a fuller understanding of audit evidence.On the other hand,the CPA's handling of audit evidence is divided into three stages: collection,evaluation and recording.It is proposed that CPA can analyze the reasons for audit failure in depth from these three stages of audit evidence and make preventive countermeasures.It provides a new reference direction for the study of audit failure.