Study On The Defects And Coping Strategies Of The Audit Procedures Of Dahua Accounting Firm

In this process of audit development,in order to adapt to the trend of automatic regulation and development of the "invisible hand" of the market economy,the relevant auditing standards and accounting standards are in line with international systems and standards,and certified public accountants rely on them.However,while China’s certified public accountants continue to improve and develop,there are many cases of audit failure,which are publicly punished by relevant administrative units,and accounting firms are even faced with litigation.Under the background of the formal implementation of the new CSRC and the strict supervision of "zero tolerance",the severity and timeliness of penalties imposed by the regulatory authorities on listed companies and accounting firms have been significantly increased,sounding the alarm for the accounting firm industry like a "knocking on the mountain and shaking the tiger".In January 2021,the CSRC released 20 typical illegal cases audited,of which two accounting firms were "listed" and criticized,among which Dahua accounting firm was punished for not paying sufficient attention to important matters and failing to exercise due diligence,relaxed the threshold of practice quality,and was warned and ordered to rectify by the SFC.Looking at the CSRC’s administrative penalty announcements for accounting firms from 2018 to 2022,it was found that deficiencies in audit procedures were the main reason for audit failure.In the context of strict supervision,standardizing and consolidating the audit procedures of accounting firms has become the focus of attention of the audit industry,so there is an urgent need for systematic research on the shortcomings of audit procedures.Starting from the CSRC’s penalty announcement of accounting firms,this paper comprehensively uses research methods such as literature analysis,case study and comparative analysis,selects Dahua Accounting Firm as the case study object,statistically analyzes the audit process defects of Dahua accounting firm’s punished audit projects,analyzes the types and reasons of Dahua accounting firm’s fined audit projects according to the audit procedure process,and finds that the audit process deficiencies of accounting firms are mostly concentrated in risk assessment procedures and substantive procedures.At the same time,the specific situation of the audit process defects is analyzed,and the response strategies are proposed according to the common problems of the audit process defects of specific accounting firms.