Analysis of reasons for audit failure and study of preventive strategies

Abstract

Using 2007-2017, securities regulatory commission announced on the administrative penalty, penalty and certified public accountant firm in the audit failure penalty as the research sample, respectively, from the audit failure of violating the frequency of the auditing standards, registered public accounting firm scale and the relationship between the financial fraud and audit failure three aspects to discusses the reasons of audit failure. It is found that “audit evidence” and “verification” account for a large proportion of audit failures. There is a positive correlation between the size of firms and audit quality, and the proportion of audit failures in “big firms” is low. There is no correlation between financial fraud and audit failure. , In view of the reasons for the audit failure, this paper puts forward some preventive strategies. ,