Financial Statement And Internal Control Integration Audit

In 2008,the "basic standard of enterprise internal control " was issued,which established the basic legal framework for China’s internal control construction.In April 2010,the“enterprise internal control supporting guidelines” were released,and China’s internal control standard system was basically completed.Since 2011,the ministry of finance has gradually expanded the scope of internal control audit,from domestic and foreign simultaneous listed companies to domestic main board listed companies.Up to now,domestic main and small and medium-sized board listed enterprises have also started to implement internal control audit.In practice,most companies’ internal control audit and financial statement audit are conducted by the same accounting firm,that is,the integrated audit.Up to now,as for the process specification of integrated audit,industry associations and regulatory bodies have not yet issued a framework or normative document on integrated audit,and practitioners do not have a unified process framework to follow in practice.At present,the domestic and foreign scholars mainly around the integration of the feasibility and necessity of the audit,cost effective,practical application and other aspects of research,and draw a relatively consistent conclusions: no matter from the audit aim,audit procedures,level of importance and the degree of assurance,the way of provide audit opinions have similarities and even overlap in many places,integrating two kinds of audit,is not only beneficial to saving the resources,and to improve the audit efficiency and effectiveness.Based on the above research background,this paper,on the basis of referring to the research results of domestic and foreign scholars,adopts the method of combining normative research and case study to carry out a more systematic research on integrated audit.Firstly,the research background is put forward.Recently,the practice of integration the two kinds of audit services has become the general trend.China’s laws and regulations only make provisions qualitatively,but do not specify how to effectively combine financial statement audit with internal control audit.Secondly,the research status,research contents and methods at home and abroad are introduced.Then,this paper summarizes the similarities and differences between financial statement auditing and internal control auditing,and on the basis of the similarities and differences,introduces the three theories of "deep pocket theory","auditrisk theory" and "synergetic effect theory" to prove the feasibility of integrated auditing.Finally,the paper analyzes the key integration points of the integrated audit process,combines with the main problems in the implementation of Z Accounting firm,and then constructs a complete integrated audit process.After completing a series of theoretical fodding and program design,the paper applies the integration audit process to S company,from several key audit stages of "risk assessment,control testing,evaluation of control defects,substantive procedures,and issuance of audit reports",this paper describes in detail how to integrate audit procedures effectively in the form of examples to demonstrate the implementation process and effect of integrated audit.Through the application of S company’s integration audit process,especially the key integration point,the feasibility of integration audit and the reliability of audit results are verified.The author concludes that the integrated audit can improve the audit efficiency and reduce the audit cost,reduce the audit risk,and also save the audit cost and improve the internal control construction.At the same time,the author puts forward corresponding Suggestions to relevant government departments,accounting firms and auditees.