Application Research Of Analytical Procedure In HS Dairy Company Audit

In 2017,HS Dairy company was investigated by financial institutions and creditors for financial fraud,revealing that its corporate valuation is close to zero,which has caused a huge social reaction.Its stock has plummeted in the short term and has been suspended since then,with the HS Dairy company incident,The society is becoming more and more serious about the CPA,and the quality requirements of auditing have become more and more important.In the context of the difficulty in improving auditing costs,the analytical procedure have been the focus of the industry as the most effective audit program for financial fraud in HS Dairy company.Therefore,this paper studies the analysis procedure of HS Dairy company,in order to improve the theoretical and practical research of the analytical procedures in the audit by analyzing the typical example of HS Dairy company.This article introduces the basic theory in the first part,firstly divides the purpose of the application of the analysis program into three stages.and then introduces the basic conditions of the analysis program,Including the professional quality of certified public accountants;familiarity with the situation of the audited enterprises;analysis of the expected relationship between data.At the same time,It summarizes the implementation of the impact analysis program.The key factor of the effect.In the second part,based on this foundation and corresponding theoretical research,establish a reasonable analytical framework,from the risk assessment,substantive analytical procedures,the overall review of the data in the HS Dairy company financial statements and non-financial information outside the HS Dairy company financial report Perform an analytical procedure.In the process of analysis,this paper firstly found through the risk assessment that the HS Dairy company's operating income level,inventory cost,monetary funds,debt and other subjects have a large risk of material misstatement,and then in the substantive analytical procedure these subjects Combined with other audit evidence,the analysis was carried out,and then the overall comparative analysis confirmed whether the analysis results at this stage were consistent with the audit evidence obtained by the substantive procedures,and concluded that the HS Dairy company had false profits,inventory fraud,and forged cash.The flow,concealing the problem of fraud due to excessive debt leverage and loss of ability to continue to operate.At the end of this section,the shortcomings and deficiencies of the analysis program are presented.In the third part,through the above analysis and comparison,conclusions and inspirations are drawn: in the process of CPA implementation analysis,not only should the financial data credibility be emphasized,but also non-financial information should be fully utilized;not only should the surface of the financial statements of the enterprise be pay more attention to the company's ability to continue to operate;be vigilant about the corporate debt situation;conduct more horizontal cross-examination problems between enterprises.In the process of analysis,it should not only be based on financial ideas,but also should combine interdisciplinary knowledge with the rationality of business operations and use expert work to analyze problems;rationally use big data auditing;and strengthen the professional ability training related to the analytical procedures of auditing talents.Therefore,the efficiency and quality of auditing can be improved by strengthening the theoretical research and practical application of analytical procedures.