Ruihua Accounting Firm Research On Audit Optimization Of NR Electric Annual

Since the revision of the auditing standards in China in 2007,all firms have gradually applied risk-oriented auditing methods.However,in practice,there are many irregularities such as arbitrary deletion of substantive procedures and lack of analytical review.Especially in the audit of state-owned enterprises,auditors tend to reduce risk awareness,making modern risk-oriented auditing in the form.The power industry is an important pillar industry,which has the common commonality of state-owned enterprises and its distinctive industry characteristics.When conducting external audits on state-owned power companies,they often face auditing problems such as high technical barriers and complex assets.There are also deficiencies such as lack of professional prudence and irregular audit procedures.At present,there are few studies on the external risk-oriented audit of state-owned power companies.This paper selects Ruihua's annual audit of NR's insurance as a case,aiming at optimizing the external audit quality of power companies,prompting the firm to prevent industry audit risks and jointly promote The power state-owned enterprises develop healthily.This paper firstly combs the concept,risk and process of annual report audit,clarifies the connotation of modern risk-oriented audit,analyzes the superiority of modern risk-oriented audit in preventing audit risk,and analyzes the application of modern risk-oriented auditing ideas in annual report audit.Then it analyzes the whole process of NR annual audit,focusing on the evaluation of NR electrical audit risk and risk response of Ruihua Certified Public Accountants,and summarizes the main difficulties of Ruihua Certified Public Accountants in the audit of NR Electric Annual Report.Investigating the shortcomings of Ruihua Certified Public Accountants in implementing the annual review of state-owned power companies includes insufficient understanding of the company's operating environment,imperfect procedures for designing audit risks,and irregularities in substantive procedures and their causes.Based on this,optimization measures are proposed.The policy recommendations for improving the audit quality of risk-oriented annual reports of state-owned power companies are given.In view of Ruihua's optimization measures for NR Electric's annual review,we have a deep understanding of the company's operating environment through a strategic and systematic view,strengthen the evaluation of the control environment to improveinternal control evaluation,increase information sources and use analytical procedures to deal with fraud risks.Targeted audit procedures to address revenue recognition risks,use expert work to address R&D expenditure-related risks,and standardize implementation of substantive procedures.