Research On Insufficient Professional Suspicion In Audit Failure

In recent years,with the development of economic globalization and the increasing use of enterprise accounting estimates,the complexity of economic operations has deepened,leading to a deepening of audit business complexity and an increasing number of audit failure cases.According to relevant data,the important reason for audit failure is the lack of professional suspicion among certified public accountants.Therefore,the theoretical and practical communities have gradually strengthened their emphasis on occupational suspicion,and have conducted relevant research on occupational suspicion,achieving some research results.However,most of these research findings are based on theoretical analysis and discourse,or empirical research with larger subjective datasets.Therefore,this article will avoid the above methods and conduct a statistical analysis of the audit failure penalties published by the China Securities Regulatory Commission,and discuss them in conjunction with specific cases.The research methods of this article are literature research and case analysis.Firstly,the literature review section summarizes and comments on the connotation and reasons of audit failure,the connotation and influencing factors of professional suspicion,and the research methods for measuring professional suspicion;Secondly,in the statistical analysis section,the administrative penalty documents related to audit failure cases published by the China Securities Regulatory Commission from 2011 to2021 were analyzed from three dimensions: year of occurrence,consequences,and reasons.Based on audit standards,insufficient performance of professional suspicion in penalty documents,and answers from the China Securities Regulatory Commission to the application of professional suspicion,the insufficient professional suspicion in audit failure was studied,and the relationship between professional suspicion and audit failure was obtained;Once again,in the case introduction section,this article takes the Zhongtianyun Audit Shengtong Group incident as a research case,introducing the involved firms,enterprises,and related cases separately;Finally,the case analysis section provides a detailed analysis of the specific manifestations of insufficient professional skepticism among certified public accountants in the case,and further analyzes the reasons for insufficient professional skepticism.It is found that the annual audit workload of accounting firms is overloaded,and the quality control system is not sound,which affects the level of professional skepticism among auditors.Certified public accountants blindly and excessively believe in the audited entity or tend to cater to management preferences,hindering their ability to maintain professional skepticism,The low level of punishment imposed by the China Securities Regulatory Commission and the inadequate regulatory system are not conducive to maintaining professional skepticism among accountants.Based on the above analysis,this paper draws the conclusion that "insufficient professional skepticism of certified public accountants is the core problem leading to audit failure".Combined with specific cases,it is found that the main manifestations of insufficient professional skepticism of certified public accountants are the failure to implement recognized audit procedure in the risk identification and assessment stage and the risk response stage,and the failure to pay timely attention to abnormal situations,which will directly affect the implementation of further audit procedure by certified public accountants Obtaining reliable audit evidence and objectively evaluating it affects the final audit quality.Therefore,in the complex and ever-changing economic situation,in order to reduce the occurrence of audit failures and ensure the effective and accurate application of professional skepticism,it requires the joint efforts of accounting firms,registered accountants,and regulatory agencies.In terms of accounting firms,it is necessary to alleviate the pressure of auditors’ annual audits,establish and improve the quality control system of the firms;Certified public accountants should enhance their professional skepticism and enhance their independence;In terms of supervision,it is necessary to improve the substantive audit rotation system,enhance the ability to conduct inspections during the process,and strengthen the punishment afterwards.