An Analysis of the Causes of Audit Failure and Preventive Measures from the Perspective of Key Audit Matters: A Case Study of Dahua's Audit of Jintongling

We explore and analyze the audit failure case of Dahua Certified Public Accountants audit of Jintongling from the perspective of Key Audit Matters (KAMs). We find that, in both execution and disclosure, the KAMs requirement has become a mere formality and has failed to serve its intended purpose. To prevent such failures, We propose targeted measures from the perspectives of audit firms, regulators, and investors to promote the transition of KAMs from "formal compliance" to "substantive effectiveness."