Research On The Causes And Countermeasures Of Audit Failure Of Enterprise Merger And Acquisition Business

Merger and acquisition is one of the fastest and most effective ways to help enterprises expand their business scope and competitiveness However,the rapid gain of M&A behavior is often accompanied by higher risks For the acquirer,if the synergy effect cannot be achieved,it is easy for the business risk,goodwill impairment risk and so on For the acquired party,it is usually faced with the pressure of performance commitment,and it is easy to take risks and implement financial fraud for the benefit The complexity and particularity of merger and acquisition itself will increase the audit risk and the difficulty of audit work Therefore,the audit of M&A business has higher requirements for certified public accountants,greater audit risks and higher possibility of audit failure The failure of M&A audit will affect the reputation of certified public accountants and accounting firms in the industry and their position in the hearts of customers;It will bring a series of negative impacts to both parties of mergers and acquisitions,and may seriously affect the break of enterprise capital chain;It will also disturb the normal economic order and harm the interests of the public Compared with ordinary annual report audit,M&A audit is more complex and high-risk.At present,China is still in the tide of M&A,and we should pay more attention to the prevention of M&A audit failure The purpose of this paper is to study the causes of M&A audit failure and the effective measures to prevent M&A audit failure under the background of M&A.There are many reasons for the failure of M&A audit,including direct and indirect factors Certified public accountants fail to set up reasonable audit procedures for mergers and acquisitions due to poor practice level.The imperfect audit system of accounting firms for mergers and acquisitions audit business is the direct influencing factor leading to audit failure;The internal control of both sides of merger and acquisition is flawed,and the supervision department is lax,which will greatly reduce the audit risk of merger and acquisition,which is an indirect factor leading to the failure of merger and acquisition audit Although there is no direct causal relationship between audit risk and audit failure,when the audit risk reaches a certain level and exceeds the scope of audit risk limit,the risk will cause losses In other words,under certain conditions,M&A audit risk will be transformed into M&A audit failure,so M&A audit risk can help M&A audit failure Therefore,to study the reasons for the failure of M&A audit,it is necessary to cut into some behaviors of the relevant subjects of M&A activities from many aspects,which may directly or indirectly lead to the failure of M&A audit This paper selects Dahua Certified Public Accountants’ audit failure case of Changyuan Group as the research object,combines the relevant data collected from the public websites of Changyuan Group,such as official website,official website,Juchao Information Network,etc.,and goes deep into the relationship between the audited units of CPA firms and the four main bodies of external supervision departments and the audit failure of mergers and acquisitions.The specific performance is as follows: CPA fails to identify and evaluate the risk of material misstatement and fails to have due professional ability and professional quality;There are loopholes in the audit system of accounting firms,and there are problems in business undertaking and stage;There are defects in the internal control of the audited units,and the moral level of the management is low;The punishment of external supervision departments is insufficient,the effectiveness of supervision work is poor,and the supervision system is not perfect Finally,this paper puts forward some effective measures to prevent the failure of M&A audit: CPA should improve the level of practicing ability and fully understand the internal and external conditions of audited units;Accounting firms should improve the audit system,standardize business undertaking,abide by independence and pay attention to the impact of premium mergers and acquisitions on audit;The audited units should improve the internal control system and improve the professional ethics of the management;External supervision departments need to increase punishment and improve the supervision system.