On Problems And Optimization Of Confirmation Procedure

Confirmation procedure is a kind of substantive procedure,which plays an important role in confirming whether the bank deposits and current accounts of the audited units are real or not,and in keeping complete records.As an audit procedure to obtain evidence directly from third parties,the credibility of audit evidence obtained by correspondence procedure is high,so it has become an indispensable audit procedure for accounting firms to conduct audit work.However,due to improper implementation of the confirmation procedure,more and more cases of administrative penalties and warning letters have been received by accounting firms,which has to arouse widespread concern and reflect deeply on the problems exposed by auditors in the implementation of the confirmation procedure.In order to have a better understanding of the current situation and problems of the implementation of the confirmation procedure in China's accounting firms,and to put forward some suggestions for improvement,this paper takes the A accounting firms as an example to deeply analyze the main problems existing in the implementation of the confirmation procedure by auditors,from the angles of the accounting firms,the audited units and the consulted units.In order to provide references for improving audit efficiency and guaranteeing audit quality,this paper makes an analysis of the reasons for the optimization of correspondence procedures applicable to the whole industry.In this paper,case analysis is used as the research method,and A accounting firm is taken as an example to study the problems and improvement suggestions of the confirmation procedure of China's accounting firms.Firstly,this paper analyses the implementation form of the confirmation procedure,and points out the limitations of the current implementation form of the confirmation procedure in China.Through the announcement of the administrative penalty of the CSRC to the accounting firms from 2014 to 2018,it illustrates the current status of the implementation of the confirmation procedure.Secondly,from five aspects to discuss the implementation of confirmation procedure and existing problems of A accounting firm,from the perspective of accounting firm,audited unit and inquired unit,the reasons for the existing problems are analyzed.Through the analysis,it can be concluded that the lack of attention paid by the accounting firm,the audited unit and the inquired unit to the confirmation process is the fundamental reason for the low rate of confirmation reply and the poor quality of the confirmation result.The lack of effective confirmation procedure control system in accounting firms,the lack of cooperation of financial personnel of audited units and the improper attitude of respondents have resulted in the failure of confirmation procedure.Through the case study,aiming at the main problems found in practice,this paper puts forward some suggestions to improve the current confirmation procedure from the aspects of accounting firms.Accounting firms should strengthen the training of auditors' comprehensive quality,formulate a standardized certification procedure control system,arrange experienced personnel to take charge of the certification work,design the content of the letter of confirmation,strengthen communication with the audited units,and call on the state and industry to strengthen supervision.At the same time,the paper puts forward suggestions for the informatization development of the confirmation procedure,introduces the idea of "Internet +" into the future confirmation procedure,and puts forward the idea of constructing the platform of "Internet + confirmation",with a view to providing guidance and assistance to the auditors in the implementation of the confirmation procedure to a certain extent,so as to standardize the process of the confirmation verification procedure and improve the effectiveness of the supporting procedure in supporting the effectiveness of the audit results.