Research On Improving The Integrated Audit Of The New Over-the-counter Companies By Baker Tilly China

As an important means to prevent financial information fraud,internal control audit has been paid more and more attention by the public.In 2017,the Ministry of Finance promulgated the Internal Control Standard for small Enterprises(for trial implementation).It provides the basis for the internal control construction and audit of small enterprises.In recent years,the New OTC Market,dominated by small and medium-sized enterprises,has shown a explosive growth trend.Securities Regulatory Commission increasingly stringent the monitoring on the financial information disclosure of the New OTC enterprises.In the implementation of the New OTC Market audit business,the accounting firm often adopts the form of integrating internal control audit and financial statement audit to ensure the quality of audit and the cost of audit.Therefore,this paper studies and optimizes the process of the integrated audit of the New OTC Market enterprises based on the case of Hunan Xeno Life Science Co.by Baker Tilly International Limited.It is of great significance to the successful implementation of audit work undertook by certified public accountants.Under the guidance of contract theory,knowledge spillover theory and synergetic effect theory,this paper analyzes the necessity of implementing integrated audit of New OTC listed enterprises to combine out the integrated audit process framework.Combined with the practical practice of the New OTC audit,this paper analyzes the process of the integrated audit from the stage of audit planning,audit implementation and audit completion.It is found that the audit schedule is unreasonable,the relevant industry information is not being fully understood,the execution of control tests is not appropriate,the application of analytical procedures is neglected,the audit evidence is lacking to verify each other,and there are some other problems such as duplication of work.Therefore,auditors should be regularly trained in integrated auditing standards based on case analysis;Strengthen the understanding of the characteristics of the New OTC enterprises;In the stage of audit plan,the overall audit strategy and the specific audit plan should be formulated based on the specific characteristics of the New OTC enterprises;When implementing the integrated audit,the top-down approach is adopted to carry out the risk assessment and refine the evaluation dimension;In control testing,emphasis is placed on alternative control of separation from duties and fraud control over management;Considering factors of concrete control defect evaluation;The analysis of non-financial information needs to be taken into account in substantive procedures;In the audit completion stage,communicating the audit result with the management and the management level is necessary;It is necessary to use the correlation of the audit business cycle and the mutual authentication of the audit evidence to reduce the duplication of audit work.