Governance Of Audit Failure Based On Conflict Model Case Study

As an important regulatory force of the capital market,audit can help the normal operation of the capital market,which is of great significance.However,the continuous occurrence of audit failures has damaged the image of China’s certified public accountants.People who want to use their own funds for investment also lose confidence,and the smooth operation of China’s economy is blocked.The problem of audit failure is in urgent need of governance and research.This paper uses the case study method to study the audit failure and its governance,and selects the failure of zhongtianyun audit Shengtong group as a case study.From the activities in the audit process,this paper analyzes the performance and characteristics of audit failure,finds out the factors of audit failure,and puts forward governance countermeasures from the perspective of conflict model according to the analysis content.Through the analysis of cases,we can find out the performance and characteristics of audit failure based on the perspective of conflict model,so as to analyze the factors that the auditee exerts pressure and the factors that the accounting firm resists customer pressure.The factors that the auditee exerts pressure include making up for losses,having the right to decide audit expenses and difficult to identify fraud means,In terms of accounting firms,the factors that resist customer pressure include inadequate implementation of audit risk assessment procedures,defects in substantive audit procedures,defects in internal control audit procedures and other factors.Therefore,from the new perspective of conflict model,we need to start from the subjects of both sides of audit,reduce the probability of audit failure,enhance the audit ability of certified public accountants and improve the quality of audit business.The main contributions of this paper are: expanding the application of audit conflict theory in the field of audit failure of accounting firms;In terms of practical significance,it enriches the research on the combination of specific audit failure cases and audit conflict model,helps to strengthen the attention to audit conflict model in the actual audit work of accounting firms,and helps accounting firms improve audit quality and efficiency.