Research On The Audit Risk And Countermeasures Of Coal Enterprises

In recent years, domestic coal prices have declined constantly and inventory of the coal production has overstocked, due to the slow growth rate of economy and the impact of the imported coal. Meanwhile, mining cost of domestic coal mines has been improved, leading to the unsatisfactory profitability and operating pressure of the coal business. There are higher possibility of mistakes in financial statements of coal enterprise under the present macroeconomic environment, market conditions and the pressure of performance evaluation of the management team. For that reason, audit risk is the probability of the CPA’s failure to detect significant misstatement in financial statements and to provide appropriate audit opinion because of error or fraud. Therefore, project members generally have no choice but to undertake a higher level of audit risks, of which is unable to be get rid of completely. These risks are unavoidable that they can only be reduced to an acceptable level by planning corresponding design countermeasures. Aiming at markedly enhancing audit quality, how to prevent and decline audit risks are the current problems to be solved.Thesis is mainly base on the fundamental concepts and data modeling of audit risk, to introduce the effect in relevant procedures of audit risk, and also to research audit risk and effective countermeasures in coal enterprise, thus this studies is aiming to analyse and evaluate the audit risk of LHT mine. First of all, the influences of macroeconomic environment and financial scandals to audit risk are illustrated, to indicate the significance of this thesis, and the comparison of research results between china and world-wide is stated at the same time. Afterward, it is focusing on the coal enterprises’ present situation of risk and the main emphasis of audit of coal enterprise in accordance with the CPA’s experience in previous work. Furthermore, according to preliminary understanding of the corporation and previous experience of audit of coal enterprises, the initially evaluation of risk, the analysis of corporation risk controlling and the respect of financial statements in specific project factors are summarised as the risks during the process of audit working. In 2014, there is an analytical procedure applied on unaudited annual financial statement, which have set operating revenue, accounts receivable, fixed assets, inventory and operating costs as significant areas of auditing. In accordance with the identified audit risks, to propose the effective measures, including project team members and audit procedures for high-risk aspects of the simulative implemented subjects. As a result, the whole idea of coal enterprises and audit risk control strategy proposed in the planning phase, implementation phase, and the review stage must frequently maintain professional skepticism, to control the situation of risk as a whole, and the project team members should respond to auditing risk in a wide range of risk recommendations.During the process of auditing operations in LHT mine, designing and implementing auditing procedures by rational allocation of personnel, saving cost of auditing and applying analytical procedures to solve the identified auditing risks. Finally, in order to decline the risk to an acceptable level, risk controlling, analysis on elements of financial statements project and procedure design for auditing of identified risks were required.