Research On The Inventory Audit Of H Chemical Company

Inventory audit has a direct impact on the objective reflection of the financial situation.At the same time,the audit of inventory subjects is also conducive to the discovery of unintentional errors or fraud in the inventory business.For manufacturing enterprises,inventory usually accounts for a large proportion of current assets and total assets,and its importance is obvious.Therefore,performing audit procedures to confirm the amount of inventory is the focus of the audit.However,the characteristics of large inventory types,large quantities,and large differences between inventories make the authenticity and integrity of inventory more dependent on the improvement of effective inventory audit procedures,which also means that there is a greater risk of inventory audit.In recent years,in the administrative punishment decision issued by the Securities Regulatory Commission on accounting firms,a number of points pointed out that there was improper conduct in the inventory auditing process,which had to arouse widespread concern and deeply reflect on the various aspects exposed by auditors in the implementation of the inventory auditing process kind of problem.In order to gain a deeper understanding of the current status and specific problems of inventory audit implementation in China’s accounting firms,and to propose corresponding audit process optimization suggestions for the existing problems of inventory audits,this article uses R accounting firms as an example to analyze in depth the auditors’ The main problems in the implementation of the inventory audit procedure are analyzed from the three aspects of the implementation of the inventory audit procedure.The problems and causes of the inventory audit are analyzed in order to propose suggestions for the optimization of the inventory audit procedure applicable to the entire industry,in order to improve the audit efficiency and ensure the audit quality.This article uses the case analysis method,taking R accounting firm as an example,to study the audit procedures related to the inventory subjects performed by our accounting firm,and analyze the existing problems and reasons,and then propose corresponding improvement measures.First of all,this article sorts out the meaning and characteristics of inventory audits,the overall goals and processes of inventory audits,and the contents of inventory audits.Based on this,combining with the characteristics of chemical companies,this article briefly analyzes the characteristics of chemical companies’ inventory and explains The possible influence of the characteristics of the inventory of chemical companies on the audit.Secondly,this article summarizes the current status of the inventory of H chemical companies,taking the specific process of implementing audit procedures as the main line,restoring the risk assessment procedures,internal control tests,and substantive procedures implemented by the auditors on the inventory.The internal control test and the implementation of the substantive procedures start from the three links to find out the problems existing in the implementation of inventory audit procedures.Finally,according to the problems existing in each link,put forward corresponding suggestions.Based on the research of R accounting firm auditing the inventory of H chemical companies,this article puts forward the following improvement suggestions for different links.During the implementation of the risk assessment procedure,auditors should pay attention to the external environment to increase risk awareness,comprehensively understand the types of inventory,and understand the production situation of the enterprise;in the implementation of internal control testing,auditors should focus on the control testing,integration Industry characteristics Implement audit procedures and pay attention to whether inventory internal control is strictly in accordance with design.In the implementation of substantive procedures,auditors should improve the supervision and selection of inventory,conduct multi-dimensional analysis of inventory to find abnormalities,and check in combination with other business cycles.This article puts forward suggestions for the specific process of inventory audit in order to improve the quality and efficiency of inventory audit in this industry.