Study on the Reasons for the Failure of the Audit of Luckin Coffee and Suggestions for Countermeasures

With the rapid development of China, auditing is essential to developing and managing every company. Strict auditing procedures and professional auditors can ensure the authenticity of corporate accounting information and prevent incidents detrimental to the company’s rights and interests. This paper examines the Luckin Coffee audit failure and provides insight into the countermeasures and recommendations for audit failure. The paper introduces the whole incident and the companies involved to reveal the means of financial fraud and the reasons for audit failure. Finally, it proposes countermeasures and recommendations for audit failure and calls on companies to strengthen their management to avoid similar incidents.