A Case Study Of ZH Accounting Firm On Audit Risks Controlling

As a third-party social service organization,accounting firms control the authenticity of listed companies' financial statements,which is related to the protection of investors' interests and the stable development of the market.However,with the increasingly complex business environment,increasing supervision and diversified fraud methods,the audit risks that certified public accountants need to deal with are also gradually increasing.In the accounting firm industry,controlling and reducing audit risks is an unavoidable problem in the audit work of certified public accountants.Only by properly solving it can accounting firms be prevented from taking legal responsibilities and the steady development of the industry be promoted.This paper mainly focuses on the audit work that ZH accounting affairs participated in the three years during the backdoor listing of YBT Company.Case analysis method,literature research method and data analysis method are used to discuss the risk control process in the four stages of ZH accounting firm's business acceptance,implementation of audit procedures,personnel dispatch,manuscript and report review.It reveals that ZH accounting firm has not properly evaluated the environment of the audited entity and low audit fees restrict the audit cost during the business acceptance stage of YBT Company's audit.The CPAs failed to perform their due diligence obligations during the business implementation stage,including failing to implement necessary audit procedures and lacking professional doubt attitude;In terms of personnel dispatch,the professional competence of auditors cannot meet the project requirements,and the problems of failure in the final three-level review are analyzed.The specific reasons for the relevant problems are analyzed,and solutions to the problems are found from within the accounting firm.It is proposed that ZH accounting firm should standardize the business undertaking.Require auditors to strictly follow the auditing standards and be cautious so as to make the best of Duty of Care.Promoting the professional competence of certified public accountants through internal talent training and external talent introduction;Improve the draft and report review mechanism and other related suggestions.This paper puts forward specific measures to deal with audit risks from theorganizational structure of ZH accounting firm and the professional quality of certified public accountants.To a certain extent,it helps to improve ZH accounting firm's ability to deal with audit risks and the overall market competitiveness of accounting firms,thus promoting the firm's long-term and steady development.At the same time,it can also be used for reference by other accounting firms facing with the same situation,hoping to improve the audit risk response level of the integrated accounting firm industry and provide effective new ideas and methods for domestic accounting firms to avoid and control audit risks.