Research On The Audit Methods Of State-owned Enterprises’ Liquidation Of Subordinate "Zombie Enterprises" In The Case Of GJ Company

At present,China is vigorously carrying out structural reforms on the supply side.In 2015,the Central Economic Work Conference set "to de-capacity,destocking,de-leveraging,cost reduction,and short-cutting" as five structural reform tasks,and clean up "zombie enterprises".It is an important measure to complete the task of reform.State-owned enterprises are the backbone of China’s economic development and also an important pillar of China’s market economy.They not only shoulder the heavy responsibility of maintaining and raising the value of state-owned assets,but also shoulder the heavy responsibility of implementing state policies and fulfilling their social responsibilities.Therefore,the correct and reasonable clean-up and disposal of state-owned "zombie enterprises" is an important part of the "capacity removal" task.The large number of state-owned enterprises to clean up and close subordinate "zombie enterprises" is the most common phenomenon.A study of the audit methods used by state-owned enterprises to clear and close subordinate “zombie enterprises”can not only make the supervision of auditing in state-owned enterprises give full play,but also examine the implementation of structural reform policies on the supply side and prevent the loss of state-owned assets.Strengthen the construction of clean government in state-owned enterprises to ensure the healthy development of our national economy.This article reviews the "zombie enterprise" connotation,"zombie enterprise" audit,bankruptcy liquidation audit related literature,based on the theory of public fiduciary responsibility theory,information asymmetry theory and immune system theory,on the basis of the state-owned enterprises to clean up the closure of "zombie enterprises" The government audit method was studied.With state-owned enterprises cleaning up and shutting down auditing methods of subordinate “zombie enterprises” as the research object,and paying attention to the large number of state-owned enterprises under the supply-side reform policy,the government’s auditing methods should be improved to learn from bankruptcy liquidation audits.The idea provides better suggestions for the audit of state-owned enterprises.This paper selects the routine auditing cases of C-city auditing institutions for the old state-owned GJ company,and focuses on exploring the audit methods implemented when state-owned enterprises clean up and close their subordinate “zombie enterprises” during theaudit process,focusing on the field’s Audit methods and procedures,and audit findings.Through the case study,the deficiencies of the existing auditing methods were studied.Finally,in light of the inadequacies of the audit methods used by state-owned enterprises to clean up and close “zombie enterprises”,this paper puts forward suggestions for improving and improving audit methods,and adopts different audit methods and measures for different levels of risk,and improves auditing.The professional expertise and the relevant experiences in drawing lessons from liquidation audits provide relevant recommendations.It also serves as a reference for the selection of auditing methods when state-owned enterprises clean up and close subordinate “zombie enterprises” in the subsequent government audit work.