Research On Audit Strategy Of State Owned Enterprises Based On Modern Risk-orientation

Nowadays society economy is making rapid progress.Business operators constantly seek globalization and diversify expansion to increase market share,promote the profit and amass earnings.It comes with huge business pressures and potential financial fraud,what is bringing more and more audit risks to certified public accountants.To ensure the reliability of financial statements and avoid penalties in the regulatory industry,modern risk-based audit has become a hot spot.Modern risk-oriented audit shift the focus of audit,conduct a comprehensive inventory of the economic,political,industrial environment and other aspects of the audited units.There are also higher requirements for auditors and offices with the broadening of concern.Auditors should be professionals who have an in-depth understanding of the audited unit industry and strategy;offices should built strong databases to meet the needs of auditors and their environment.But it's hard to do both for some external audit of state-owned enterprises.First of all,offices obtain the projects of audit through bidding in the fierce competition.Cost have to be squeezed because of the company large scale.It's hard to be satisfied with personnel placement.Secondly,Many state-owned enterprises are monopolistic industries that regulated by the government,so data and business are kept secret.Offices are struggling to obtain information about their database.Thirdly,due to the lack of shareholders,state-owned enterprises,the delegate have the right to decide whether to use the office in future audit projects.In order to keep the customer,offices have to optimize “service attitudes”,and it is difficult to compel auditees to come up with audit evidence that they do not want to provide,and auditors are possible to turn a blind eye to false reports and fraud.Therefore,in the annual report audit of state-owned enterprises,accounting firms desperately need to enhance their knowledge literacy and communication skills,expand the time and space to understand the industry.To save time,cost and guarante audit quality by improving audit procedures,the state and society should also make improvements in the legal and industrial environment that allow firms to get out of cost strengthen the independence of auditors.In this paper,the author firstly introduces the development course of audit mode,then explaines the reason why state-owned enterprises need to improve the audit model.Finally,the theory is connected with practice,evaluate the shortcomings of modern risk-oriented audit of state-owned enterprises in particular cases to improve the propose ways.The case in this article is the State grid zhejiang electric power company annual report audit project that the author participated in the D office from the end of December 2016 to early April 2017.The narrative sequence is dominated by the audit testing process and the audit time process is auxiliary.First,office conduct the risk assessment of audited units,include analysis of the development status and industry characteristics of the power industry,national grid zhejiang electric power company's goal,strategy and so on.Then selecting the four subsidiaries and subsidiaries of provincial companies,we have a better understanding of internal control to implement control test and material test.The purpose of this audit is to provide identification services for power companies in zhejiang province,evaluate whether the financial statements are prepared based on the financial statements used,make audit conclusion and issue audit report.Although the data that the article used is real,the case can provide reference for the use of annual report audit of state-owned enterprises.Because of the shorts of theoretical knowledge and practice,the paper still have shortcomings in depth and breadth.