Research On Audit Failure And Prevention Of Backdoor Listed Companies

With the rapid development of the market economy under the current environmental background,the number of listed companies in our country is also increasing.However,because the market environment is nearly saturated,companies need longer review time and more complicated procedures if they want IPO listing.This has led to more and more companies choosing backdoor listings.Affected by many factors,backdoor listed companies often have the problem of financial fraud,which greatly increases the risk of audit failure,which has a serious impact on investors and accounting firms.Therefore,this article intends to analyze the reasons for the audit failure of backdoor listed companies and make a summary,and put forward corresponding preventive countermeasures against these problems,in the hope that subsequent accounting firms can absorb experience and respond effectively when undertaking backdoor auditing business.In addition,this article takes Xinghua Certified Public Accountants’ audit failure of H and R Century Union Corporation as an example,combined with the relevant reasons summarized and specific preventive countermeasures above,from two levels——Xinghua Certified Public Accountants and CPA,specifically clarifies the reasons for Xinghua’ s audit failure of H and R Century,and provides corresponding preventive countermeasures for these problems.At the same time,correctly guide accounting firms and certified public accountants to carry out audit work,scientifically avoid or effectively reduce the audit risk of accounting firms and CPA in the backdoor listing audit business,and improve the audit quality of accounting firms and CPA on audited entities,so as to effectively prevent the audit failure of backdoor listed companies.