The Impact of Auditor Liability System on Audit Quality: ShineWing China Accounting Firm as An Example

Tongwen Yue; Yi Hou

doi:10.54097/fbem.v10i2.11051

Authors

Tongwen Yue
Yi Hou

DOI:

https://doi.org/10.54097/fbem.v10i2.11051

Keywords:

Auditor responsibility system, Audit procedures, Audit quality, ShineWing, Letv.

Abstract

The complexity of business operations and the likelihood that accounting information may be distorted are both rising along with the market economy's quick expansion, which raises the stakes for auditing work. In the process of independent auditing, the purpose of the auditor responsibility system is to control the auditor's numerous audit relationships. To a certain extent, this system can prevent audit risk and lower the likelihood of audit failure, improving audit quality. This paper examines the issues and causes of certified public accountants' audit failure in the auditing process, examines the current issues with the auditor responsibility system, and makes recommendations for enhancing audit quality in light of the administrative penalty decision made by the China Securities Regulatory Commission (CSRC) on ShineWing China Accounting Firm and the two signatory certified public accountants in 2022. suggestions for raising the quality of the audit.

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