Research On Audit Risk Of Film And Television Company Income

Traditionally,the research on audit risk mainly focused on the traditional industries of manufacturing,and seldom involved some emerging industries.There are emerging industries represented by film and television industry with the rapid development of China’s economy.With a large amount of capital input,these industries have developed rapidly in recent years.But with the coming is an endless stream of financial fraud,throughout the film and television industry in recent years,it can be found that the enterprise mostly whitewash on the income project.Income items as a momentous part of the income statement,is a symbol of enterprise operating results,also become a hotbed of corporate financial fraud.The income composition and income recognition methods of the film and television industry are obviously different from those of the traditional industries of manufacturing.Thus,when the certified public accountants audit the film and television industry,they should pay attention to the income audit risk points which are different from those of the general industry.Therefore,in order to promote the healthy and vigorous development of China’s capital market,this thesis analyzes the income audit risks of film and television companies according to the modern risk-oriented audit model,and puts forward some suggestions to deal with the audit risks.In order to accurately and comprehensively understand the current status of my country’s current film and television industry revenue audit risks,and to enrich audit risk theory and practice,this thesis adopts the case study method and takes Beijing Jingxi Culture and Tourism Co.,Ltd.The current state of auditing and auditing risks are studied.First,it analyzes the overview of my country’s film and television industry,and then analyzes its income composition and related audit procedures from the annual report of Beijing Jingxi Culture and Tourism Co.,Ltd.;then analyzes and finds the audit risks existing in Beijing Jingxi Culture and Tourism Co.,Ltd.The risk points in the income audit are analyzed from the three aspects of the report level,the identification level and the inspection risk:At the level of financial statements,film and television companies have relatively large extrnal environment risks,defects in internal control,imperfect governance structures and a greater possibility of fraud;at the level of revenue recognition,film and television companies have early recognition of revenue,due to the correlation between revenue and cost.The identification risk caused by weak and related party transactions is the risk of accuracy identification caused by the use of the planned income ratio method,and the pricing of copyright income and variable consideration have a large number of subjective judgments.Risks arising from insufficient professional competence,inadequate and appropriate audit procedures and insufficient audit evidence.In response to the above identified risk points,this thesis puts forward suggestions in turn.At the level of financial statements,certified public accountants can assess the overall operational risk of the audited entity by understanding the audited entity’s policy and regulatory changes,market environment and industry conditions.At the same time,it is necessary to maintain a prudent attitude in the design and implementation of the internal control of the enterprise,and cannot rely too much on its own internal control.In the face of the risk of identification level,the certified public accountant should pay attention to the confirmation and its substitute procedures according to the income characteristics of the film and television industry,and obtain sufficient and appropriate audit evidence by maintaining control over the whole process of confirmation and analyzing the reply letter.In addition,auditors should focus on the related parties of film and television companies,upstream and downstream enterprises,and the actual controller of the audited unit.Also,pay careful attention to the sales and collection cycle.In terms of risk inspection,firms should improve the quality control construction of accounting firms,improve the professional competence of certified public accountants,and reasonably design substantive audit procedures for income to obtain sufficient and appropriate evidence.Through case analysis,this thesis obtain the income audit risk of Beijing Culture,and gives some suggestions to control the high risk of income audit in the film and television industry.It is hoped that through this thesis,effective countermeasures that can be applied to the film and television industry can be put forward,which will help the film and television industry in my country.The development of auditing has contributed to the development of the audit.