Vol. 14 No. 1 (2025), 09-12

With the gradual improvement of China’s capital market supervision and management system, financial fraud cases represented by Zeda Yisheng, a company listed on the Science Technology Innovation Board, have received extensive attention in the capital market. This paper takes the financial fraud case of Zeda Yisheng as the research object, explores the causes of audit failure by deeply analyzing the specific means of its financial fraud, and puts forward targeted audit countermeasures and suggestions to prevent financial fraud. Zeda Yisheng mainly carried out financial fraud through means such as fabricating business transactions and falsifying financial data, resulting in serious distortion of its financial data. Regarding the causes of audit failure, it is mainly manifested in insufficient assessment of enterprise audit risks, ineffective internal control testing, as well as deficiencies in the professional capabilities and professional ethics of relevant auditors. As for how to better prevent financial fraud in the future, this paper puts forward suggestions and countermeasures, including improving relevant laws, regulations and supervision systems, optimizing the audit process, improving the internal audit and risk control systems of enterprises, and enhancing the professional quality and independent and objective awareness of auditors.