Academic Journal of Business & Management, 2023, 5(13); doi: 10.25236/AJBM.2023.051320.
Jinhao Chen, Jiazhi Jiang, Jinlong Liu, Meitao Dou, Minglei Zhang
Department of Finance and Economics, Shandong University of Science and Technology, Jinan, 250031, Shandong, China
This article takes Shine Wing Certified Public Accountants as the research object, and uses the method of case study to analyze the causes and preventive measures of audit failures of accounting firms. Through the analysis, it is found that Shine Wing has defects in some audit procedures, and its audit failure is mainly caused by the accounting firm and the audited unit. Based on the flaws in Shine Wing's audit procedures and the reasons for audit failure, this paper summarizes the experience and lessons, and puts forward countermeasures against audit failure in a targeted manner.
Audit Failure, Audit Quality, Accounting Firm, Certified Public Accountant
Jinhao Chen, Jiazhi Jiang, Jinlong Liu, Meitao Dou, Minglei Zhang. Analysis of Audit Failure Cases of Accounting Firms—Take Xinyongzhong and Audit LetV for Example. Academic Journal of Business & Management (2023) Vol. 5, Issue 13: 140-146. https://doi.org/10.25236/AJBM.2023.051320.
[1] Han X., & Huang T. (2021). Research on the Audit Failure of Accounting Firms in China from the Perspective of Auditor Rotation System. Frontiers in Psychology, 12, 604986.
[2] Wang L., Chen H., & Wu J. (2021). Research on Audit Failure and Risk Prevention Mechanism Based on Data Mining. IEEE Access, 9, 139330-139343.
[3] Gao X., He Q., & Liu L. (2020). Research on Audit Quality of Accounting Firms under the Supervision of China's Securities Regulatory Commission. International Journal of Environmental Research and Public Health, 17(10), 3601.
[4] Dhaliwal D.S., Lamoreaux M.G., Litov, L.P., & Neyland, J. (2022). The Consequences of Accounting for Asset Retirement Obligations: Evidence from Air Pollution Control Costs. Contemporary Accounting Research, 39(1), 440-468.
[5] Chu L X, Ning S U. Analysis of the Kelon electrical ware using the modern risk-oriented audit[J]. Economic Research Guide, 2010.
[6] Raudla, R.; Kallas, K.; Vadi, M. The importance of accounting ratios in firm bankruptcy prediction: An Estonian example. Int. J. Bus. Financ. Res. 2020, 14, 125–132.
[7] Salinas, J. M., & Solórzano-García, M. (2020). The relationship between corporate social responsibility and financial performance: Evidence from Mexican companies. Journal of Cleaner Production, 242, 118371.
[8] Zhi, Y.; Liu, L. A study on the relationship between financial ratios and corporate social responsibility—Evidence from Chinese A-share listed companies. Int. J. Environ. Res. Public Health 2021, 18, 1862.
[9] Dhaliwal, D.S., Lamoreaux, M.G., Litov, L.P., & Neyland, J. (2022). The Consequences of Accounting for Asset Retirement Obligations: Evidence from Air Pollution Control Costs. Contemporary Accounting Research, 39(1), 440-468.
[10] Tseng, S.H.; Nguyen, T.S. A method for visualizing posterior probit model uncertainty in the early prediction of fraud for sustainability development. Axioms 2021, 10, 178.
[11] Zhang, Y., & Zhou, H. (2020). The role of media in regulating audit quality: Evidence from China. Journal of Accounting and Public Policy, 39(4), 106834.
[12] Jiang, H., Huang, J., & Li, X. (2021). The effect of internal control quality on firm performance: Evidence from China. Journal of Business Research, 131, 499-510.
[13] Chen, Y., Chen, H., & Chen, J. (2021). Internal control quality, audit quality, and financial reporting quality: Evidence from China. Journal of Business Research, 129, 35-49.
[14] Huang, Y., Liu, W., & Yu, Y. (2021). Auditor's Responsibility for Fraud Detection and Internal Control Audit. In Proceedings of the 2021 International Conference on Management, Education and Social Science (ICMESS 2021) (pp. 362-365). Atlantis Press.
[15] J. Zhang, X. Xie, & J. Xie. (2021). Does industry specialization affect audit quality? Evidence from China. International Journal of Auditing, 25(1), 107-123.