Analysis On The Problems Of The Confirmation Of The Audit Procedures Of ABC CPA Firm

The confirmation of the audit procedure,CPA firm directly from the confirmed company about certificate of audit evidence obtained,to verify the financial data of the auditees balance which as a conventional method is real or effective,it is also a key substantive procedures to obtain the confirmation of the audit procedure of all process dominated by CPA,as well as by the auditees and the confirmed company in collaboration.Because the confirmation of the audit procedure is a very key audit procedure,in order to give full play to its due role.However,in recent years,Many audit failures are caused by improper confirmation,such as Nine good group Group incident,Sinovel Wind Group incident,Kangmei pharmaceutical incident,which not only exposes the irregular operation of auditors in the implementation of the confirmation of the audit procedures,but also auditors failed to meet the standards they are supposed to meet in many cases.Reasonable confirmation of the audit procedure is not only a key factor to ensure the completion of the whole audit work,but also enables the auditors to have a specific understanding of the relevant account balance of the auditees.Therefore,through the improvement of the confirmation of the audit procedure,not only the smooth implementation of the whole audit project can be guaranteed,but also the goal of CPA to improve its process control.Through the analysis of the case that ABC CPA Firm do for JYKJ Company's annual review,this paper combines domestic and foreign relevant theories with practical cases.Through reading domestic and foreign literature,and using the method of induction and summary,the main points of case study are sorted out,and the analysis framework of this paper is constructed.The first chapter is the introduction,which introduces the reasons for choosing the case for analysis and the background of the case.On the basis of collating the relevant literature of the confirmation of the audit procedure,this paper clarifies the analysis logic of this paper,and sets up the research framework of this case.In recent years,we can see from the research on the procedure of confirmation audit domestic and abroad that there are few literatures on the analysis of confirmation audit,so this paper tries to provide some reference and reference for the domestic procedure of letter audit by analyzing the risk of confirmation audit and putting forward preventive and control measures.The second chapter elaborates the principles and characteristics of the confirmation of the audit procedure,the content of the confirmation of the audit procedure and confirm the important role of the confirmation of the audit procedure in the whole audit process,which paves the way for the following case analysis.The third chapter introduces the implementation steps of ABC CPA firm's confirmation audit procedure through practical cases,and elaborates the implementation of auditor's confirmation audit procedure and the audit risks existing in it.The forth chapter analyses the reasons of audit risk in the implementation of confirmation audit procedure from four aspects.The fifth chapter comprehensively considers the specific objectives and principles of the implementation of the confirmation audit procedure,and puts forward corresponding risk prevention and control suggestions for the main problems found in the actual work of the auditee,CPA firms and the verified entity,and strengthens the implementation of the alternative test procedure.Through analyzing this case,the following conclusions are drawn: ABC CPA firms still have many risks in the confirmation audit process,and need corresponding risk prevention and control measures to avoid its occurrence.This case also brings us a lot of inspiration,such as the effective implementation of alternative testing procedures,which can reduce the risk of confirmation audit procedures.In this paper,literature reading,case analysis and other methods are used to analyze the impact of risk on ABC CPA firms based on the practice of ABC CPA firms.The existing theories are applied to practice,and conclusions and inspirations are drawn,which provide case proof for the study of relevant theories.From the auditor's point of view,the potential risks of the confirmation audit procedure are analyzed,which is helpful to improve the confirmation audit procedure of the CPA firm.This paper lies in the fact that the risk and prevention and control of confirmation audit procedure in China are relatively small.This paper studies the risk prevention and control of confirmation audit procedure through the case of JYKJ annual audit project in 2014 by ABC CPA firm,and then studying to prevent and control the risk existing in the confirmation of the audit process,so as to provide reference for auditors of other audit projects that how to correctly implement the confirmation audit process.