R&D Capitalization Audit Research

The rapid development of the society and torrid economic growth not only brought new opportunities for the enterprises,but also intensified the competition between them,especially those high-tech enterprises,which rely on technological innovation.Companies invest a lot of resources,including manpower,financial and material resources into R&D process,so to continuously upgrading technology,thus not lag behind.Therefore,the R&D activities and related expenses accounting are getting more attention,both from the enterprises and the society.It is the significant part of the regulatory review,and it is also the key and difficulty for auditing.Therefore,this thesis attempts to study the R&D capitalization problems from the perspective of auditing.When reviewing literature,I found few focusing on R&D capitalization auditing research,temporarily there is no article analyzing by means of case study.So this article selects a new industry case to analyze the auditing problems in R&D capitalization,and puts forward corresponding suggestions on key points of auditing,providing reference opinions on audit work to the capitalization of R&D for the new industry.This paper studies the auditing issues of R&D capitalization in the form of case study,choosing enterprise Guanhaoshengwu's twice IPO experiences as background,analyzing the process of auditing.The first part is the introduction,it mainly introduces the writing background and significance of the topic.The literature are mainly divided into three parts: the motive and influencing factors of R&D capitalization,information disclosure and internal control,and gives a simple summary and review of literatures.It also summarizes the innovation and weakness of the thesis,and points out the structure of the paper and method it uses to analyze the questions.The second part of the thesis is to give a brief introduction of the accounting system of R&D expenditure: including the three stages of R&D expenditure accounting development in our country,several shortcomings of the current accounting treatment of R&D capitalization,and emphasizes the development of emerging industries will influence the set of accounting standards and the accounting treatment of the enterprises.The third part of the thesis discusses audit issues of R&D capitalization problems,and generally divided them into two categories from nature: deliberate fraud and irregularities.It also discusses the relationship among the regulators,enterprises and auditors.Coupled with the part of the impact that the emerging industry brings to accounting.This part summarizes the problems in the process of auditing: the fraud,uncertain rules and the personal judgement.Fourth part of the thesis is a case analysis.First,there is a simple analysis on the background of the case.Then it discusses several issues in the form of auditing,started from understanding both internal and outside environment of the enterprise,including the industry background and the basic situation of company;to implementing control tests respectively in the project approval,the implementation and project acceptance stages.At last,the further substantive procedures are taken in order to make it clear that the determination of capitalization,the impairment of capitalization are reasonable,and the disclosure of information on R&D is sufficient,so to get the final audit conclusions.Fifth part of the thesis is based on the previous research and analysis,to point out the key of auditing R&D capitalization in the new industry.This part gives suggestions that the related accounting standards should be improved,and that auditors should fully focus on the condition of R&D capitalization,related information disclosure and understand regulatory requirements.Sixth part is the last part of the thesis,it gives a summary of the full text and analyzed the innovations and shortcomings of the thesis.