Design&Application Of Integrated Audit Process On Financial Statements And Internal Control

After the outbreak of Worldcom and Enron, the SOX Act was enacted. Gradually, people realize that the importance of internal control in reducing the number of fraud, strengthening management, improving performance and so on. Therefore, enterprises pay more attention to the establishment and improvement of internal control;Stakeholders require not only to carry on the financial statements auditing, but also internal control auditing in order to obtain higher quality of financial information to increase their investment confidence. At this point, the internal control auditing and financial statements audit are in the equally important position, which is also an independent external reports authentication business. In the process of financial statements audit and internal control audit, people found that the two have many common, and puts forward the integration of audit. The emergence of the integration of audit can solve high audit fees of listed company and ensure the quality of certified public accountants audit. It is a kind of brand-new concept, but due to integrated audit is just introduced in our country, the studies of it are mainly concentrated in the establishment and perfection of institutional basis, significance and the relationship between the two audit, etc., for practical operation level how to guide the research of certified public accountants audit work hardly. Therefore, on the basis of the scholars research results, around the integration of audit goal, in practice the operational layer, this paper studied the design and application of integration of the audit.First of all, from the integration of audit goal and the ultimate goal of the audit and technical operation level, this paper analyzes the necessity and feasibility of the integration of the audit, it is concluded that integrate audit can reduce costs, improve efficiency and effectiveness, ensure the quality of audit, the audit financial statements and integration of the internal control auditing for certified public accountants and for auditees,it is a win-win choice.Second, through the audit of financial statements and internal control auditing processes of comparative analysis, it is concluded that risk assessment procedures and control test is the key to the integration of the audit content. And then design the integration of the audit process, as the integration of the audit of certified public accountants practice provided ideas and reference;Finally, based on the perspective of cost, efficiency and effect, audit process should pay attention to the six aspects of structures to construct integration audit’s application platform, select the best audit strategy and control key issues to ensure smooth implementation of the integration of audit. The five aspects is the audit main body choice,liability risk measure, the distribution of the audit fee and management,the communication in the process of audit, and risk assessment process of execution and the implementation of the control test. From the aspect of practical guidance it can help certified public accountants to carry out the integration of audit work in the future.