Research On Audit Failure Based On Auditor-Firm Model

With the rapid development of international economic situation changing with each passing day,Chinese economy has also improved the quality of growth has entered a new stage of development,the performance of the capital market is more and more active,for enterprises,this is the opportunity of development can not be encountered,but at the same time,we should also see many difficulties that accompany it.The development of enterprises cannot be separated from the support of funds.Many enterprises hope to achieve the purpose of financing more funds through various forms of active in the capital market.As the gatekeeper between enterprises and the capital market,accounting firms play the role of supervisors,so the audit report issued by certified public accountants bears the ardent expectations and trust of regulators and the public.Due to this expectation and trust,once the audit opinion in the audit report is contrary to the real situation of the audited entity,no matter whether the error is caused by subjective or objective reasons,it is inevitable that some stakeholders will condemn the accounting firms,and it is also difficult to avoid the serious punishment from the regulatory authorities.This paper takes the audit of Xinyi Shares of Shenzhen Tangtang Accounting Firm as a case,takes the Auditor-Firm conflict theory as the theoretical basis,and uses case analysis,literature analysis and model analysis to analyze the audit failure.The research content of this paper consists of the following five parts: the first part is the introduction,which introduces the research background and significance of this paper,summarizes and analyzes the literature research of relevant scholars at home and abroad,and reviews the relevant literature.At the same time,the research content,research methods and innovation points of this paper are expounded.The second part discusses the related concepts and theoretical basis of audit failure.Based on the understanding of the identification of audit failure,the analysis is made on the basis of the "process view" of audit failure.Relevant theoretical bases such as Auditor-Firm conflict theory,principal-agent theory,information asymmetry theory and GONE theory are selected for a brief introduction,which lays a theoretical foundation for the analysis of the reasons for audit failure of Tangtang New Billion Shares by using Auditor-Firm conflict model.The third part is the introduction of the case,which mainly introduces the background of the case.Taking the Xinyi Stock case as the research object,it respectively introduces the general situation of Xinyi Stock and Shenzhen Tangtang Accounting Firm,the process of the case,the result of the progress and the punishment.The fourth part of the case analysis,the audit conflict model is applied to specific audit failure cases,through the power conflict between the CPA and the management of the audited unit analysis of the causes of audit failure.In the fifth part,based on the Auditor-Firm conflict model,the author puts forward some suggestions to avoid audit failure.On the one hand,certified public accountants should avoid the pressure imposed by management authorities by screening clients to undertake business prudently,standardizing audit fees and clarifying performance responsibilities,understanding the characteristics of the industry to assess audit risks,strengthening communication and improving audit quality.On the other hand,CPAs should improve their ability to resist customer pressure from the aspects of perfecting business quality control construction,maintaining professional suspicion,enhancing competence and strengthening risk response.