Research On The Integration Of Financial Statement Audit And Internal Control Audit

Since a series of financial scandals exposed like Anran and WolrldCom corporations,which have triggered great attention of national governmental regulators all around the world towards the internal controls of listed companies.Particularly,the Us government published Sarbanes-Oxley Act(SOX Act)for this purpose,in which it focuses on the self-assessment report of the control and audit in the enterprises that American public companies must publish after the certified public accountants audited as companies' eternal audit.After its publication,a new trend of attention towards internal-controls raised in the world.The American Public Company Accounting Oversight Committee as a non-profit institutions which aims at protecting investors' interests during such harsh times performed its obligation: issued the second norm The financial statements audit related financial report internal control audit(AS2),which is used with the 404 clause in SOX Act as well.It was believed that the issue of the norm can be an example for various countries in the world,who knew that there came a high execution cost and low execution efficiency in the implementation so that the listed companies delisted one after another.So in the year 2007,PCAOB issued the No.5 auditing standard The financial statements audit related financial report internal control audit(AS5)to supplement and adjust AS2.After that,the “Integration of the audit” formally entered the history stage.Our country in order to act on international convention and make the domestic-control construction be perfect,The enterprise internal control audit guidelinesas the definition and norm of domestic integration of the audit was first published at home in 2011.With guide and exposition,when companies do audit work,they can freely choose whether put the internal control audit and financial statement audit integrate together.For its late start and immature theoretical research,how to carry it out in the actual progress remains open to question.The essay firstly states the theoretical concept of integration of the audit and take Shanghai Jahwa as analytic target to pour over case studies.It adopts the way of combining theory and practice to elucidate the importance of integration audit.Based on the preceding theory support,it reworks the implementation of integration audit andselectively analyzes the two key integration points---risk assessment and control.In the aspect of case analysis,it analyzes and explains the internal control audit opinion that Price Water House Coopers provided to Shanghai Jahwa.The theory and practice call for each other.At last,it from the government,certified public accountant,society and the public four perspectives puts forward practical recommendations on how to carry out integration of audit and hopes that it can be a modest spur to induce the theory research of the integration audit as well as practical execution.