Case Study Of Arbetter Audit Failure

Whether at home or abroad,the reason why the securities industry can steadily promote development,and to some extent reflect the economic status and situation of the region,is inseparable from the reliability and fairness of financial report data.The use of financial reports can be reflected here,which is to make the industry personnel,to grasp the relevant information and situation of the industry.On this basis,in order to ensure the truth and fairness of the report,the third party of the society is required to audit the report,so as to enhance its value and basis.However,after analyzing the punishment information and announcements in recent years,it can be seen that the financial fraud phenomenon of the listed companies still exists for a long time.At the same time,such characteristics of the securities industry are particularly obvious.So,because of the auditors and relevant institutions own existence of various objective factors,such as:independence,cautious enough,etc.,promoted the possibility of improper audit opinions in a result,such incidents frequent if scope,is bound to have a negative influence on the industry’s credibility and stability,it is difficult to guarantee sustainable development.Auditing failure is related to the credibility of the industry and the stable development of the industry,which is an unavoidable topic.The well-known audit failure cases,such as Enron,WorldCom,Green-Land,and Yin-Guang-Mansion,have all seriously damaged the resource allocation mechanism of the capital market,damaged the interests of investors,and also greatly impacted the credibility of the audit industry.Therefore,the focus of our discussion should focus on the risk points and pain points existing in all aspects of audit subject and object,as well as how to avoid such two points of failure.This paper will start from the research results of domestic and foreign scholars,combined with theoretical basis,in such preparation IQ of the selected cases for the expansion of in-depth discussion and consideration.Specifically,the overall research train of thought is:in combination with the era background of the case,based on the current theoretical research,focus on analyzing and introducing the fraud of Baxter exist and failed to carry out their duties diligently in the process of the audit of certified public accountants,actions and responsibilities of the parties subject description and division,to point with surface,analysis and improvement.It is hoped to help reduce similar risks in the future,improve the quality of audit,improve the authenticity of financial information to a certain extent,and reduce the probability and possibility of audit failure.