A Case Study Of Improper Audit Procedures In LBX Accounting Firm

In recent years,accounting firms often fail in audits due to improper audit procedures,so the ability of accounting firms to design meticulous and rigorous audit procedures to ensure that the audit procedures are effectively implemented has become a key factor in the authenticity of the audit report.With the start of the 14 th Five-Year Plan,digitalization and intelligence are becoming the core forces of the new round of global productivity revolution.As a key component in maintaining the stability of the capital market,the auditing industry has begun to shift from traditional auditing to intelligent auditing.However,the transformation process within accounting firms has been too slow,making it difficult for accounting firms to effectively implement audit procedures,which has resulted in accounting firms having to resign auditors for failing to complete audits within the required working hours.There is a dearth of existing research on improper audit procedures in China.It is important to study improper audit procedures because it not only enriches the audit theory,but also helps to design and execute audit procedures better in practice with case studies.In this paper,the case of LBX accounting firm’s resignation as auditor of RC company is studied based on principal-agent theory,risk-oriented audit theory and information asymmetry theory.Through the study,this paper analyzes the specific manifestations of improper audit procedures of accounting firm,including long recovery period of bank deposit and related party correspondence,low reliability of original voucher sampling procedures,ineffective implementation of fixed asset monitoring procedures,and increased difficulty in assessing enterprise going concern risks.Then,through case study and literature analysis,this paper analyzes the specific reasons for the improper audit procedures in accounting firms,such as over-reliance on traditional correspondence procedures,single form and object of evidence collection,high cost of monitoring procedures,and incompatibility of CPA’s judgment with the development needs.Finally,based on the current trend of intelligent auditing and the technology of "big intelligence,mobile cloud and object area",this paper puts forward relevant countermeasures and suggestions for improper audit procedures in audit cases,including accelerating the construction of digital platform for correspondence,enhancing the authenticity and diversity of remote sampling,promoting the remoteness of fixed asset inventory procedure,and improving the CPA’s enterprise The above case studies can provide a good example of audit procedure misconduct.The above case study can make a small contribution to the theoretical research on audit procedure misconduct and provide some reference for the occurrence of similar cases or practices in the future,save the work cost of accounting firms and improve their efficiency.