Research On Auditing Issues Of Government Subsidy Projects In The Audit Of Urban Investment Platform Annual Report Under The New Standard

On June 12,2017,the Ministry of Finance issued the revised �Accounting Standards for Business Enterprises No.16 � Government Subsidies�,which revised the scope of application of government subsidies,related accounting subjects and accounting treatment methods,making all implementing enterprises The accounting information related to the government subsidy project of the city's investment platform has undergone tremendous changes,which has a profound impact on the audit of government subsidies for city investment and financing platform companies.For auditors,when investing in the annual report of the City Investment Platform,it is necessary to grasp the scope and accounting methods of government subsidies for government subsidy projects,analyze the audit concerns under the newly revised government subsidy standards,implement effective audit procedures,and assist management.Standardize the accounting and presentation of government subsidy projects and reduce the audit risk of government subsidy projects.This paper takes XH Certified Public Accountants as an example of the audit of the government subsidy project in the TF Group's 2017 annual report audit,and finds out the audit problems of the government subsidy project in the urban investment platform annual report audit.First of all,it is not correctly judged whether the received government subsidy is in the scope of government subsidies.In judging,it is necessary to analyze the definition and characteristics of government subsidies.City Investment Platform Company delivered the resettlement house to the relevant government department and obtained the subsidy.The transaction has commercial essence,not the economic resources given by the government.It is the government's purchase of the resettlement house construction service of the city investment platform,which needs to be determined according to the income standard.The subsidy received does not have a non-compensatory feature and does not fall within the scope of government subsidies.Second,government subsidies are not properly classified.It is not appropriate for an accounting firm to classify government subsidies unrelated to daily business activities into other income.Since the newly revised government subsidy guidelines do not define the definition of daily activities,professional accounting judgments are required when auditing firms audit.If the cost of the subsidy related to the subsidy received is above the operating profit,the subsidy is related to the daily activities.If the subsidy is highly relevant to business operations such as daily sales,it is related to daily activities.Subsidies that are not related to daily activities are included in non-operating income and are usually incidental.Again,the subsidy received was not confirmed at the correct time or period.At the time of the audit,it is difficult for the general enterprise to calculate the government subsidy according to the accrual basis.Due to the particularity of its business and the special relationship with the government,the government subsidy has the basis for accounting according to the accrual system..Therefore,the government subsidy of the City Investment Platform Company shall,in the case of the government subsidy document issued and meet the conditions attached to the government subsidy,carry out the relevant accounting for the government subsidy according to the accrual basis,instead of the right to receive the government subsidy.Accountability system for accounting.Finally,government grants were not presented as required by the guidelines,making it impossible for stakeholders to obtain complete and valid information on the economic resources obtained from the government from the notes in the audit report.The amount of government subsidies received by City Investment Platform Company is significant,even partially exceeding the total profit.Government subsidies are of great importance to the city investment platform company.The government investment subsidy audit of the city investment platform company is extremely important for the accurate and complete presentation and disclosure of government subsidy projects.It is also the requirement of accounting standards.The reasons for the above-mentioned audit problems of accounting firms are mainly due to insufficient auditing ability of government subsidies,lack of understanding of the audited entities and their industry characteristics,unfamiliarity with the classification criteria of government subsidies,and lack of understanding of government subsidy reporting requirements.In response to the audit of the TF Group government subsidy program,improved audit measures were proposed.In the process of auditing,it analyzes whether there is risk in the government subsidy accounting from the perspective of risk-oriented.The accountant should understand the profit composition and main source of the audited entity,and analyze the contribution of government subsidies to profits to decide whether to subsidize the government subsidy project.Appropriate attention was paid to the focus of the audit,and the audit process of government subsidies under the new standards was improved,and appropriate audit procedures were implemented.In the audit,carefully examine the relevant documents of government subsidies,communicate with government departments or letters,and analyze whether the subsidies received are applicable to the newly revised government subsidy standards,check the classification type,and whether the newly revised government subsidy standards are appropriate.Determine whether government grants have been confirmed during the correct accounting period,and whether the presentation and disclosure of government grants is complete and accurate.