Research On Audit Failure Based On Optimized Audit Conflict Model

China’s traditional manufacturing enterprises are facing an increasingly dangerous external environment,and its comparative advantage is gradually weakening.The industrial innovation ecosystem is not perfect,and its innovation ability is weak.There is an urgent need for transformation and upgrading.In the context of industrial transformation and upgrading,faced with internal and external pressures,traditional manufacturing enterprises have encountered development bottlenecks.Financial fraud and audit failure cases have occurred frequently.Audit failure damages the interests of investors,leads to the loss of the credibility of the independent audit,and has a negative impact on the economy and society.In recent years,although the CSRC has continuously strengthened the investigation and punishment of audit failure,the phenomenon of audit failure has become more and more serious.We should deeply explore the real causes of audit failure.Although the cause analysis of audit failure has been detailed,most of the current relevant studies are carried out from the four perspectives of accounting firms,certified public accountants,audited units and external supervision.Few studies take into account the problem of audit conflict,so they cannot find the root of audit failure.Audit conflict reflects the power contrast and game between the two sides in each audit stage.The behavior choice of either side will have a significant impact on the audit results.Audit failure is a result of audit conflict.Based on this,from the perspective of audit conflict between the audit subject and the audit object,this thesis analyzes the behavior choice and game process of both parties in the audit process,explores the reasons behind the audit failure,and discusses the prevention mechanism of audit failure.This thesis comprehensively uses the methods of literature research,model construction and case analysis to study the causes and prevention mechanism of audit failure.After analyzing the development characteristics of China’s traditional manufacturing enterprises and the conflicts between the two sides in the audit engagement stage,execution stage and reporting stage,this thesis expand and optimize the traditional N&P audit conflict model,including the power basis,driving factors and constraints of the audited unit’s fraud,as well as the power basis and constraints of the normal audit of the audit subject.Finally,this thesis constructs an audit conflict model suitable for the current situation of traditional manufacturing enterprises in China,which provides a model framework for case analysis.In the case analysis part,this thesis selects the typical case of Zhongtianyun’s audit of Shengtong group,comprehensively analyzes the power basis,driving factors and constraints of Shengtong group’s fraud,as well as the power basis and driving factors of Zhongtianyun’s normal audit,and defines the responsibilities of both parties in the audit failure,so as to further analyze the causes of the audit failure.At last,based on the audit conflict model of traditional manufacturing enterprises and relevant case analysis,this thesis puts forward relevant suggestions for traditional manufacturing enterprises to prevent audit failure.From the perspective of audit object,on the one hand,weaken the power basis and driving factors of its fraud,on the other hand,strengthen the restrictive factors of its fraud.From the perspective of audit subject,on the one hand,strengthen the strength foundation of its normal audit,on the other hand,weaken the restrictive factors of its normal audit.It is hoped that the above measures can achieve the effect of avoiding audit failure.