A Study of the Audit Failure of Kedi Dairy from the Perspective of CPA Due Diligence
DOI:
https://doi.org/10.62051/xpzqex79Keywords:
Audit Failure; Certified Public Accountant (CPA); Due Diligence; Kedi Dairy.Abstract
This study employs the literature research and case analysis methods. First, through a comprehensive literature review, it synthesizes existing domestic and international scholarly findings and perspectives on audit failures and CPA due diligence. Then, it innovatively applies a due diligence perspective to examine the Asia Pacific Firm's audit failure in the Kedi Dairy case, analyzing the company's fraud techniques, the specific manifestations of the auditors' failure to fulfill their due diligence responsibilities, and the resulting regulatory penalties. By integrating the findings from the regulatory sanction announcements, the study specifically identifies the causes of the audit failure from three levels, including regulators, accounting firms, and individual CPAs, and proposes corresponding preventive recommendations based on this analysis.
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