Study On Audit Evaluation Of Going Concern Capability

With the development and reform of national economy,market competition is increasing.The living environment of listed companies in China is not optimistic,and the problem of going concern is becoming more and more prominent.Investors and regulators are paying more attention to the going concern of listed companies.In December 2016,Chinese Institute of Certified Public Accountants has issued 12 revised standards based on the actual situation of our country,including auditing standards for Chinese certified public accountants No.1324-going concern,which requires a separate section of significant uncertainty related to going concern in the audit report and emphasize the CPAS should pay more attention to the function of risk warning for going concern.The going concern audit evaluation is concerned not only with the appropriateness of applying this assumption but also with evaluating the company's going concern capability.The environment of listed companies is complex and the audit scope is more extensive.Investors rely on fair financial statements to make decisions and have higher requirements on audit quality.The going concern of enterprises is significant in maintaining market stability and the audit authority.Based on the above problems,this paper combines qualitative analysis with quantitative analysis,case analysis with theoretical analysis.There are four parts in this paper.Firstly,the research background,basic theory and relevant regulations are introduced,which is the basis for the next argument.Secondly,based on the annual audit report of 2018,it analyzes the trend and cause of the audit report of going concern and summarizes the professional judgment and existing problems of CPAS in audit evaluation of going concern.Thirdly,it establishes the audit evaluation system of going concern capability in combination with risk-oriented audit and based on the above situation,including the focus of evaluation,the factor analysis and the evaluation process.Fourthly,it obtains the result of going concern audit evaluation from the three aspects of the indicator performance,the negative factors and the risk control,based on Ruihua office's application evaluation system for 28 pharmaceuticalmanufacturing audit clients.The innovation of thesis is that the financial risks,operational risks,special risks and control risks should be considered,which is based on the focus of evaluation.In the quantitative index analysis,the factor analysis method is used to reduce the dimension of many financial and operation indexes data.The samples should arranged by using principal component,which is also used to judge the sample enterprises' going concern ability,improve the audit quality of certified public accountants,and help to pay attention to the sample companies with poor ranking in the future audit.In the analysis of qualitative matters,it emphasizes to pay enough attention to the matters that have significant negative effects on the going concern of enterprises.