On Revenue Recognition Key Audit Matters Of Internet Listed Company

Since the audit report reform in China at the end of 2016,Chinese certified public accountants have faced many challenges in the audit work of key audit matters.Some issues such as Chinese relatively independent political and economic environment,and how to improve the value of audit reports through key audit matters,put forward higher requirements to the audit practice of certified public accountants.Due to its high risks and innovativeness,Internet enterprises have always been the focus of CPA audit.The audit risk of Internet enterprises is unique and hidden.How to effectively communicate to users of audit reports through key audit matters,is not only the focus of this thesis,but also the forefront of audit report reform is facing.In order to more accurately grasp the problem of key audit matters disclosure in audit report,putting forward specific effective measures that can be used for reference,this thesis selected and studied 59 Internet industry listed companies' audit reports in the Shanghai and Shenzhen stock market in 2017.based on the four parts: the wording of revenue recognition key audit matters,disclosure of audit reasons,disclosure of audit measures,disclosure of audit results,this research is trying to provide methodology for the audit practice of Chinese CPA.By applying case analysis method,this thesis studied the key audit matters of revenue recognition of Internet listed companies in China.First of all,this thesis analyzed the reasons why revenue recognition of Internet listed companies was identified as a key audit matters from the three perspectives of Internet industry,production and operation risk of Internet listed companies and audit risk of revenue recognition.Secondly,this thesis found that there were problems such as standardization and generalization of description,insufficient disclosure of audit reasons,lack of effectiveness of audit measures and insufficient disclosure of audit results in the part of revenue recognition key audit matters of Internet listed companies.Based on case study,this thesis proposes several suggestions for the key audit matters on the basis of the causes of the problems: the first,draw lessons from the experience of British certified public accountants in disclosing key audit matters,and combine the Internet industry and business characteristics to disclose specific risks of the company.The second,identify fraud risks from three aspects: pressure,opportunity and excuse,so as to improve the ability of certified public accountants to identify audit risks of Internet enterprises.The third,improve the audit measures of the solution part of revenue recognition items from three aspects: paying attention to the authenticity of business data,attaching importance to risk assessment procedures and flexibly using data analysis techniques in analytical procedures.Last but not least,Encourage and advocate certified public accountants to publish audit results and findings so as to improve the information content and transparency of audit reports.