The Influence Of Environment Matters To The Financial Statements Auditing And Countermeasure Research

In recent years, with the upgrading of the Environmental Protection heat, the Government introduced a variety of positive environmental protection laws and regulations for the protection of the environment.In order to protect the environment and prevent from contaminating, China has gradually has worked out nine environmental protection laws and 15 natural resources protection laws and issued more than 800 national environmental protection standards. In addition to the use of legal means to carry out environmental protection, the government also began to use economic means to protect environment, such as the environmental economic policy are being implemented : green credit, green insurance and green securities. This shows that the impact of environmental matters on production and operation are more and more important. If the enterprises damaged the environment in the production and operation activities, the cost of enterprises will be enormous, and will be subject to enormous liabilities and contingent liabilities, and may affect the credit and the direct financing of enterprises ,thus affecting the financing of enterprises.So the financial condition and operating results will have serious influnce ,and the enterprises may terminate the operation or even bankrupt. Environmental matters are very important to business activity, but also have a great impact on the financial statements.And the Ministry of Finance released 48 items Chinese Institute of Certified Public Accountants to practice guidelines in February 15, 2006, since January 1, 2007 accounting firms were in enforcement, which show that our country achieved a convergence of auditing standards.And the "No. 1631 -- - consideration of environmental matters in audit of financial statements "the guidelines are in the draw," the International Auditing Practices Notice No. 1010 - audit of financial statements in a matter of consideration on the environment "on the drafting of the foundation, which provide practical help to the audit staff in identifying the substantive impact of environmental matters on the information of financial statements .we can see that the impact of environmental matters on corporate finance was given increasingly emphasis, CPA should focuse on considering the environmental matters when they audit the financial statements.The specific implementation of the audited financial statements considering environmental matters can not audit the financial statements in accordance with the general procedures, and are not the simple audition of the environmental information of enterprises. Therefore, there will conduct a detailed study for the impact of environmental matters on the audition of the financial statements and the audit process of considering the impact of environmental matters on the financial statements . The main exploring question:(1)Conclude the impact of environmental matters on the audition of the financial statements. Focused on the impact of environmental matters on the assessment of the risk of material misstatement, the effects of the measures to the assessment of the risks of material misstatement and the impact of the issue of audit reports.(2) The overall design of the audition of the financial statements considering the environmental matters. Through the discussions about the impact of Environmental issues on the audition of financial statements, the comparison with the general audition of the financial statements and the environmental auditing ,and the discussion of the new audit risk model considering environmental matters.Then,designing the audition of the financial statements with the consideration of environmental matters .(3)Focuses on the two major components the process of the audition of the financial statements considering environmental matters: the identification and assessment of the risks of material misstatement caused by the environmental matters ,the measures for the risks of material misstatement resulting in environmental matters.Through the above-mentioned study, completed the overal design of the financial statements with the consideration of environmental matters, and Discuss the main content and note in the two major components: the identification and assessment of the risks of material misstatement resulting in the environmental matters ,the measures for the risks of material misstatement caused by environmental matters,which can reduce the audit risk of the financial statements with the consideration of environmental matters.The innovation: (1) The overall design on the basis of the impact of environmental matters on the financial statements ,and the reflection of the characteristics in the specific design.(2) On the basis of the implementation of modern risk-based audit, re-address the composition of the risk of material misstatement by the audit risk model, and the risk of material misstatement will be divided into the risk of material misstatement due to environmental matters and the risk of material misstatement caused by non-environmental matters , and focuses on the assessments and response of the risk of material misstatement caused by environmental matters, reflected the differences of the assessment the risk of material misstatement and response between the general financial statements audit and the financial statements audit considering environmental matters .