Revenue Audit Case Study Of F Construction Company

In recent years,the competition in the construction industry is very fierce,and the development is greatly influenced by the macroeconomic policies,and there is a great profit pressure in the construction industry.Therefore,the income of the construction industry is the key area for certified public accountants to audit.On the one hand,the accounting of construction contract revenue is relatively complex and prone to errors.Due to the promulgation of the new revenue standards,the construction industry is one of the industries most affected by this.Since 2018,the construction industry has recognized revenue based on the five-step model,and the accounting of construction contract revenue has become more difficult.,on the other hand,due to the construction contract USES the performance schedule,affirm income,namely according to the cumulative cost accounted for confirmation of the expected total cost has occurred,the related construction contract budget revenues,costs and losses foreseeable amount of budget data in the process of the project progress and revision of the estimates are involved in management,management can be adjusted by adjusting the total expected cost means the schedule of completion of a construction contract,confirm the accuracy of the revenues,costs,in turn,affects the current.It can be seen that there are all kinds of risks in the recognition of the construction industry income,which makes it difficult for certified public accountants to audit it.Therefore,this article has chosen A public accounting firm to F construction company income audit as the research object,analysis of A public accounting firm to F construction company in each stage of the audit to perform audit procedures,some problems of the income audit mainly displays in: the audit team of engineering contracting income as deemed not assessment for high risk;Failure to pay significant attention to the internal control related to the contract;Not paying enough attention to the rationality of contract cost capitalization;Management Suggestions for slow financial information transfer were not proposed.The reasons are that the audit team did not maintain due professional caution and professional doubt,the understanding and application of the new revenue standards were not in place,and A accounting firm did not implement the quality control procedures.Finally,this paper puts forward Suggestions on improving the income audit of F construction company by A accounting firm.This paper holds that certified public accountants should have A comprehensive understanding of the characteristics of the construction industry.Testing contract-related internal controls should be based on a "five-step approach";The rationality of capitalization should be paid enough attention to the contract cost which affects the recognition of contract revenue.The accounting firm should strengthen the staff’s study of the new revenue criterion and pay more attention to the quality control system.This paper studies the annual report audit of F construction company applying the new revenue criterion for the first time,and the research Angle is relatively new.However,due to my insufficient academic ability,I may not be thorough enough in analyzing the problems of the enterprise.This paper hopes to provide some ideas for future comrades who study in the same direction.