Case Study of Audit Failure of Soling Shares

Abstract

With the rapid development of the capital market, the competition of listed companies is intensifying, the pressure faced by enterprises is becoming more and more obvious, financial fraud is also emerging, and the problem of related party capital occupation is becoming increasingly prominent. The increasing number of financial frauds has not only reduced the fairness of capital markets, but also triggered a crisis of public confidence in the effectiveness of accounting firm audits. Therefore, how to audit the appropriation of funds by related parties and reduce audit failures is of research significance to the future audit work of accounting firms in China. Taking the failure of the audit of Soling shares as an example, this paper studies the failure of the audit of the use of equity pledge by the major shareholder and the failure of the audit of the appropriation of funds by related parties, analyzes the problems existing in the audit process of Ruihua Law Firm, and puts forward conclusions and suggestions based on the analysis.