Research On The Failure Of Verification Program

Confirmation procedure is a common auditing method in auditing practice,which is a procedure associated with auditors who receive inspection evidence directly from an independent third party The confirmation procedure has strong proof power and high reliability.It is generally believed that the functional evidence has strong proof power and high reliability.However,in the process of implementation,the problem of failure often occurs,which leads to audit failure.Therefore,it is extremely important to prevent the failure of confirmation procedure,and specific and feasible preventive measures need to be found urgently.This paper adopts the methods of documentation survey,statistical analysis,deductive induction,and on the basis of solving the research situation of audit failure and verification procedures,defines the basic concepts of audit failure,verification procedures and verification procedures invalidation.The analysis of sanctions imposed by the China Securities Regulatory Commission for audit failure cases from2011 to 2021 summarized the reasons for the audit failure,among which the failure of verification procedure is the main reason for audit failure.Further,from the aspects of problem verification items,characteristics of auditee,violation of audit standards,etc.,the failure problem of verification program is classified into four parts: "defective confirmation design","failure to maintain control of verification process","failure to evaluate the letter of return",and "failure to receive the letter of return",so as to reveal the specific manifestations leading to the failure of verification program.Finally,the causes of program defects in five areas are summarized(including accounting firms,certified public accountants,auditees,confirmations and external environments).Then this paper puts forward the concrete preventive measures.That is,accounting firm should implement three-level review and develop a good corporate culture and values.Certified public accountants should control the certification process,maintain professional suspicion,and implement alternative procedures.The auditee should understand and cooperate with the work and improve the internal control.The auditee should change the attitude of return letter and strengthen its independence.The external environment should continue to promote electronic confirmation and clarify the obligation of reply.Through statistical analysis and case study,the defects of certification are summarized.It not only enriches the research on the problems of collating and concluding cases,but also provides realistic thinking and new ideas for the research of our certification procedure.It also promotes the standardization of the certification procedure,thus improving the efficiency and quality of the certification and providing reference for the prevention of audit failure.