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*ST Xinyi Company's Financial Fraud and Audit Failure Case Analysis

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DOI: 10.23977/acccm.2022.040203 | Downloads: 59 | Views: 1203

Author(s)

Dandan Li 1, Bo Gao 1

Affiliation(s)

1 Business School, Northwest University of Political Science and Law, Xi'an 710122, China

Corresponding Author

Dandan Li

ABSTRACT

From the perspective of the financial fraud case of "Xinjiang Yilu Wanyuan Industrial Holding Co., Ltd.", this paper investigates the causes of audit failure by analyzing its fraud means. The study found that audit failure is the result of the symbiosis of firm violations and financial reporting fraud of listed companies. There is a correlation between the internal control of accounting firms, the independence of certified public accountants and the internal business strategy characteristics of listed companies and audit failure. The research conclusion provides empirical evidence for modern risk oriented audit and fraud audit standards. In order to effectively prevent audit failure, this paper puts forward corresponding countermeasures and suggestions from the aspects of certified public accountants, audited units, and audit market supervision. 

KEYWORDS

Financial fraud, Audit failure, Countermeasures

CITE THIS PAPER

Dandan Li, Bo Gao, *ST Xinyi Company's Financial Fraud and Audit Failure Case Analysis. Accounting and Corporate Management (2022) Vol. 4: 17-23. DOI: http://dx.doi.org/10.23977/acccm.2022.040203.

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