Research on the Causes and Countermeasures of Social Audit Failure

Abstract

In recent years, cases of accounting firms assisting audited units in fraud have appeared from time to time, and major accounting fraud cases such as "Great Wisdom" and "New Land" have been exposed, which has greatly dampened the enthusiasm of investors. Therefore, in the context of a series of accounting fraud and financial scandal cases, how to strengthen the supervision of the CPA industry, ensure the quality of industry audits, and promote the healthy and orderly development of the industry has become a new topic and a practical problem that needs to be solved urgently. The consequences of failed audits are not only manifested in the chaos of the financial market, but also in the public's distrust of audits, which seriously threatens the stability of the capital market. Therefore, this paper analyzes the reasons for audit failure and proposes effective control countermeasures.