Research on Audit Failure Based on the GONE Theory: A Case Study of Tianheng Auditing Jiangsu Sainty

The frequent occurrence of audit failure cases has become a prominent problem restricting the healthy development of the trade industry. Exploring the causes of audit failure is highly important for improving audit quality. This paper takes the financial fraud case of Jiangsu Sainty, a listed trade enterprise audited by Tianheng Certified Public Accountants for the years 2020--2021, as the research object. On the basis of the GONE theory, a “four-element–two-subject” analysis framework is constructed. Combining the CSRC (China Securities Regulatory Commission) penalty decisions and the enterprise’s annual report data, it conducts an in-depth analysis of the behaviors of the enterprise and the accounting firm, sorts out the enterprise’s financial fraud methods, and analyzes the causes of audit failure. The targeted preventive measures proposed accordingly provide theoretical and practical references for improving the audit quality of the trade industry.