Research On Audit Risk Control Problems Of Ningbo Construction Company For X Accounting Firm

In recent years,many construction enterprises have frequently faced penalties from the securities regulatory authorities due to unconfirmed construction contract revenues,incomplete internal control systems,and information disclosure violations.Combined with high levels of financial leverage in construction enterprises,high cash flow fluctuations,inherent defects of completion percentage method,audit risks of the annual reports for construction enterprises have become the focus of the various accounting firms.As the gatekeeper of the quality of accounting information,CPA audits play an indispensable role in the operation of China's capital market.Therefore,the in-depth study on audit risk control issues for construction enterprises of accounting firms will strengthen the supervisory role of accounting firms in safeguarding the order of market economy,protecting the interests of investors,reducing operational risks of construction enterprises.This paper takes the CPA audit risk control as the research subject,and takes Ningbo Construction Company's annual report audit project by X accounting firm as the research case.Firstly,this paper sorts out recent research results related to audit risk control and clarifies the reasons for the audit risk formation.And the risk-oriented audit model,modern audit risk model and audit risk control theory are also introduced.Secondly,combined with the characteristics of the construction industry,this paper analyzes and summarizes the current status and problems of the three-stage audit risk control of Ningbo Construction Company's annual report auditing project in accordance with the X accounting firm audit project-level quality control policies and procedures.Thirdly,in response to the X accounting firm's risk control issues in the annual report audit of Ningbo Construction Company,this paper analyzes the risk of material misstatements in the financial statements of Ningbo Construction Company and the detection risks in the accounting firm's process of auditing by using the modern audit risk model.Finally,from the perspective of the X accounting firm,this paper puts forward suggestions for improving the risk control issues in annual report auditing of Ningbo Construction Company.In addition,this paper provides a reference for the accounting firm to control audit risk of annual report project of construction enterprises.