:the Impact Of Occupational Skepticism On Audit Failu

In recent years,China’s economy has developed rapidly,and the number of A-share listed companies exceeded 5,000 in 2023.If the capital market wants to develop healthily and sustainably,it is essential for the financial audit of listed companies.Therefore,it is very important to improve the audit quality of listed enterprises.By summarizing 54 cases of audit failure since 2010,it is found that up to90.74% of the reasons for audit failure include the lack of professional suspicion of certified public accountants.It can be seen that the lack of professional suspicion of auditors is one of the main reasons leading to audit failure.At present,Chinese scholars are not deep enough in the study of professional doubt of auditors,and in the practice of audit work,CPA’s reasonable use of professional doubt and attention is not enough.This paper mainly uses the case analysis method,through the analysis of the failure case of Zhongtianyun Audit Shengtong Group,studies the impact of lack of professional doubt on audit failure,and focuses on the analysis of the specific path of the effect of lack of professional doubt on audit failure,and proposes the optimization strategy accordingly.First of all,on the premise of analyzing literature review and relevant theoretical basis,this paper introduces the case background of the study,including the analysis of the governance structure of Zhongtianyun and Shengtong Group,the reasons for the financial fraud of Shengtong Group,the recognition and punishment of the audit failure of Zhongtianyun,and puts forward that the lack of professional suspicion is the main reason for the audit failure of Zhongtianyun.Secondly,this paper studies three specific paths that lack of professional doubt affects audit failure,including:(1)Lack of professional doubt leads to the incomplete execution of audit procedures by Zhong Tianyun auditors;(2)Lack of professional suspicion leads to Zhongtianyun’s failure to conduct proper risk assessment on the audited entity;(3)The lack of professional suspicion led to the failure of Zhongtianyun auditors to carefully evaluate the obtained audit evidence.Finally,from the three aspects of auditors,firms and regulatory agencies,this paper puts forward specific optimization strategies to improve auditors’ reasonable and sufficient professional skepticism and improve audit quality,including:(1)Auditors should improve their professional ethics,attach importance to continuing education,strengthen their professional competence,and cultivate the habit of being skeptical of all aspects of practice;(2)The firm should strengthen the training of professional competence of auditors and carry out training on professional suspicion theories for auditors;(3)External supervision should further improve the interpretation of professional skepticism,clarify the boundary and criteria of professional skepticism,and strengthen the supervision of accounting firms.This paper aims to reflect the importance of professional skepticism of certified public accountants to audit work through case analysis.On the one hand,it enrichis the literature on the influence of lack of professional skepticism on audit failure in China.On the other hand,it emphasizes the important role of professional skepticism in the audit process,which is conducive to the further improvement of audit quality of enterprises.