The Consolidated Financial Statement Audit

Consolidated financial statements has been always and complicated issue in the accountancy and it is also majorly faced in practice. In contrast, the consolidated financial statement's auditing has become more and more important in theory and practice. It significantly ensures solid and reliable information that released from enterprises to investors, creditors, the public and the country's economic supervision services. In 2006, the announcement of the new accounting standards has led a huge improvement to practicing the long-term equity investment accounting. It let the original independent audit practical affairs proclamation already abolished, the new "Chinese Certified Public Accountants Auditing Standards NO.1401 - audit of financial statements of the special consideration" in January 1, 2011 just enforcement. In this paper is discussed under the background of consolidated financial statements the contents, procedures and audit audit difficulties and focus..This Paper aims at expressing the author's points, which is based on practical experience, on consolidated financial statements auditing's range, the merger goodwill audit, related party and affiliated transaction audit audit, and seeking on the advices.Paper pointed out the existing auditing standard insufficiently specifically and some not suitable for the provisions of the new enterprise accounting standards, this paper further formulation and new accounting standard for business enterprises adapted to the audit standard.This paper also further discussed making audit provisions in fitting the new enterprise's accounting standard.Papers follow the theory mode of "the theoretical analysis-empirical verification-policy Suggestions", which stated the difficulties of China's consolidated financial statements auditing, analyzed the faults of the audit regulation combined with cases study and raised idea of improve the consolidated range audit, goodwill audit and merger transaction audit.The paper gives creative points of view listed below:First, points out the consolidated range audit should take "control" as a standard. Focusing on merger audit scope changes.Paying attention to the real purpose of consolidated range change and giving suggestions of consolidation range changes in the consolidated financial statements that should be performed in retroactively adjusts to curb enterprise by random change, consolidated range artificial regulation consolidated.Second, merger goodwill audit is the focus of the identifiable net assets it obtains from the fair value of the calculation method and the impairment test of goodwill and suggestion of certified public accountants are goodwill confirmed training. Third, through case study demonstrates the affiliated party relations and the affiliated party transactions to other shareholders' rights and interests harm, consult international accounting standards, the proposal is in enterprise accounting standards add associated business valuation methods, relevant affiliate transaction, and price terms, in clear disclosure obligation and intensify the improper connection transaction of punishment, etc. And Suggestions in related audit norms of the increase of related transaction price of audit process allows the certified public accountants according to the affiliated party transactions price in financial statements important indexes, issue the influence degree of different opinions types of audit reports, to remind report users pay enough attention to this matters.The above ideas are definitely suitable to adopt in practice in improving the consolidated financial statements.