A Case Study On The Audit Failure Of Blue Mountain Technology By ZX Accounting Firm

With the construction of the "National Small and Medium Enterprise Stock Transfer System" platform,it provides a broader channel for Chinese innovative small and medium-sized enterprises to solve the problem of difficult and slow financing,but while the new securities market is developing rapidly and bringing new demands to the auditing industry,some drawbacks have also gradually emerged.Some of the enterprises listed on the New Third Board internal system is not sound and relevant laws and regulations are not perfect,resulting in the opportunity to implement financial fraud disclosure of false financial reports to bring serious losses to the majority of investors,and ultimately by the China Securities Regulatory Commission investigation and punishment,New Green Shares,Yindu Media and other financial fraud cases burst out one after another,the increase in audit failure cases seriously undermined the confidence of the majority of investors,and constantly reduce the accounting firm public trust further widens the audit expectation gap,how to analyze and solve their own problems from the perspective of accounting firms,reduce audit risk to reduce audit failures to improve audit quality has become an urgent problem for accounting firms to solve.This paper reviews the audit failure of ZX Accounting Firm on Beijing Blue Mountain Technology Company Limited(hereinafter referred to as " Blue Mountain Technology")in the form of a case study paper combining principal-agent theory,information asymmetry theory and modern risk-oriented audit theory by selecting a case released by the China Securities Regulatory Commission on 15 November 2021.This paper reviews the audit process of Blue Mountain Technology by ZX Accounting Firm,points out the problems of auditors in the audit process,analyzes the causes of audit failure from the perspective of accounting firm,and puts forward targeted countermeasures and suggestions to further improve the audit quality of accounting firm.The findings of this paper mainly point out that the specific causes of audit failures in ZX Accounting Firm include: lack of risk awareness among auditors of New Third Board enterprises,mismatch of audit costs and benefits,inadequate professional competence of auditors and imperfect project quality review system,etc.In response,countermeasures and recommendations are proposed to prevent audit failures from the perspective of accounting firms,mainly including enhancing risk awareness of New Third Board enterprises,improving the audit pricing and remuneration management mechanism,enhancing the professional competence of auditors and the quality of business at the project review stage to reduce the possibility of audit failures and provide reference for accounting firms to audit similar New Third Board enterprises.