Research On The Cause And Improvement Of The Lack Of Professional Skepticism In Continue Audit Process

Emphasis on financial fraud auditing liability shall be pursued under the State Council,the securities and futures commission insists intermediary institutions is not a piece of the "double check" investigated illegal behaviors such as diligently,all of this warning repeatedly to the listed company financial fraud audit of certified public accountants need to improve the quality of audit failure,through strengthening professional suspicion in the application of audit to identify corporate fraud.In August 2021,Firstar Panel Technology corrected the fictitious sales transactions without commercial substance and the related party transactions that were not correctly listed in the 2020 annual report through accounting error correction.After adjustment,Firstar Panel Technology from a profit of 52 million into a huge loss of more than 2billion,for such abnormal accounting errors,the Shenzhen Stock Exchange quickly issued a letter of inquiry,the CSRC also launched an investigation.What angered investors was that Daxin Accounting Firm,which had been auditing Firstar Panel Technology for 13 years,issued a standard unqualified audit opinion on the annual report with billions of false records.Daxin’s justification for failing to find misstatement is based on inherent limitations of audit and particularity of error correction items,and it is difficult to detect fraud under deliberate concealment and malicious collusion of management.This paper does not agree with Daxin’s argument.The inherent limitations of audit cannot be an excuse for improper audit opinions.On the contrary,auditors should keep reasonable professional suspicion and always be alert to the risk of corporate fraud.This paper chooses Daxin’s continuous audit of Firstar Panel Technology as the case,and takes the major accounting errors corrected by Firstar Panel Technology in the2020 annual report as the starting point of the study.The causes,process and consequences of the event are sorted out and displayed in detail,from which the performance of Daxin’s lack of professional suspicion in this event is found.The reasons for the lack of professional suspicion in the continuous audit process are analyzed from the three levels of audit project team,audit firm and environmental supervision,and corresponding improvement suggestions are put forward.This paper argues that daxin’s lack of professional suspicion includes ignoring the fraud signs after the change of the real controller in the audit,failing to sensitively identify and question unreasonable phenomena such as abnormal income caused by fictitious transactions,and finally issuing improper audit opinions based on its previous trust in the management without maintaining due professional suspicion.This paper argues that the reasons for the lack of professional skepticism in Daxin university can be analyzed from three perspectives.At the level of audit project team,continuous audit makes Daxin have inappropriate trust on Firstar Panel Technology,which affects the auditors’ judgment on the credibility of the management;The weakness of professional skepticism leads auditors to mechanically execute procedures and fail to design and implement targeted further audit procedures.At the accounting firm level,Daxin focuses on revenue growth rather than audit quality.The speed of business expansion is far faster than the growth rate of CPA talents,which seriously affects the audit quality of Daxin.At the level of environmental supervision,audit industry competition is fierce,and supervision is not effective and strong enough.In this regard,this paper puts forward some improvement measures to deal with the lack of professional skepticism in audit practice.At the level of the audit project team,it is suggested that the trust distance between the audit team and the audited company should be maintained reasonably,and the credibility of the management team should be judged regularly.Audit professional skepticism throughout the whole process of audit,flexible design,implementation of audit procedures.At the level of accounting firm,we should maintain independence and objectivity in form and essence.Establish a sound quality review mechanism with clear rewards and punishments,and improve core competitiveness to match the ability to undertake business.At the level of environmental supervision,the pricing concept of audit quality-oriented should be publicized,and the supervision department should implement dynamic supervision and establish audit integrity files.