Study on Causes of Audit Failure and Preventive Measures

Abstract

With the rapid economic development in our country, accounting firms play a more and more important role in economic supervision. Audit reports made by accounting firms are increasingly trusted by people and have more and more important reference value in investment. However, in recent years, when accounting firms provide audit services for companies, audit failures occur frequently, and the cases are widely concerned by people. The reasons for the failures need further study and analysis, so as to improve the audit quality. This paper analyzes the current situation of audit failure of accounting firms in recent years, and finds that although the top accounting firms have strong strength, audit failure cases still occur from time to time, and the audit quality of accounting firms needs to be further improved. In addition, this paper also finds the reasons for audit failure from four aspects, such as the association relationship of accounting firms, the sense of work responsibility, the imperfect audit procedures and the insufficient external punishment, and puts forward the strategies to improve the audit quality of accounting firms.