A Study On The Control Of Audit Risk In Solid Waste Treatment Companies By Accounting Firm J

The environmental protection industry occupies an important position in the national economic system and is a strategic industry in China.The state has gradually increased its support for the environmental protection industry,increased its investment and developed rapidly in the environmental protection industry.However,due to the short development time of solid waste treatment industry,the related internal control system of solid waste treatment company is not perfect;at the same time,the production line of solid waste treatment,such as incineration,solidification and materialization,has a large investment in the early stage and a long payback period,resulting in tight cash flow and high operating risk;the tax preference is more low fraud cost and high fraud risk;in addition,there is no obvious correspondence between the income and cost of solid waste disposal,and the risk of man-made manipulation profit and income tax attribution period is higher,which increases the possibility of material misstatement risk of solid waste treatment company,thus exacerbating the audit risk of solid waste treatment company by accounting firm.In order to reduce the audit risk and improve the audit quality,accounting firms need to control the audit risk effectively,but there are few researches on the audit risk control of solid waste treatment companies at present.Therefore,how to effectively prevent and control the audit risk of solid waste disposal company becomes the focus of audit work.This paper takes J firm's annual report audit of D solid waste treatment company as an example to analyze the current situation and existing problems of audit risk control of D solid waste treatment company from the aspects of identification and evaluation of material misstatement risk and inspection risk control.In view of the problem of not fully identifying the risk of material misstatement in the identification of the risk of material misstatement of the audited unit,this paper puts forward the identification of all kinds of transactions,events and related disclosures by understanding the external environment,internal environment,financial situation and internal control of the audited unit.Aiming at the problem of large risk assessment problems in the risk assessment of material misstatement,the evaluation method of material misstatement risk is optimized by using fuzzy comprehensive evaluation method to set up evaluation index,determine the weight of evaluation factor,construct fuzzy matrix,fuzzy comprehensive evaluation and analyze the evaluation results.Finally,according to the results of the risk assessment of material misstatement,the overall response measures are taken to the risk of material misstatement at the level of financial statements;for the risk of material misstatement at the level of identification,the level of inspection risk is first calculated according to the audit risk model by setting the expected level of audit risk and the level of material misstatement risk at the level of assessment,so as to determine the risk response measures based on substantive procedures,supplemented by control tests,and then further audit procedures are implemented in the areas assessed with high risk of material misstatement at the level,and finally the purpose of controlling the risk of inspection is achieved.