A Research On Internal Control Audit Of Sales And Receipts

As Chinese capital market becomes more regulated and mature,information disclosure by listed companies becomes more open and transparent,enabling external information users to have more intuitive understanding of the operating and financial conditions.In 2008,it issued a number of institutional norms and measures on enterprise internal control,and clearly listed companies to hire a third party to conduct supervision and review in addition to self-evaluation to check for gaps on China.In particular,sales and collection is the economic lifeline of an e nterprise,reviewing the internal controls is a way to ensure the authenticity,legality and integrity of accounting information.For CPAs,maintaining care and using professional knowledge to make reasonable professional judgment are key.Through literature research,case analysis and field investigation combined with principal-agent theory,information transmission theory and risk management theory,this paper determined the relevant theoretical basis and research content.First of all,we had a preliminary understanding of the basic situation of M’s,and focused on the analysis of the design and implementation of sales and collection internal control,including the main departments involved,marketing models and collection methods,business processes,and the main financial data involved.Secondly,the audit made the plan and workflow of L Firm in this area.It was found some problems such as inadequate risk identification and assessment,lacking of evidence control of business processes,undefined internal control deficiencies and rectification and insufficient reliability of audit evidence.The main reasons were: over-reliance on the professional skills of the auditors,lacking of business process ability of auditors and poor audit information technology.Finally,in response to the identified problems and causes,improvement measures were proposed: improving the design and execution of audit procedures,strengthening the training of complex audit personnel and building an intelligent platform for audit robots.In conclusion,we have further to strengthen the supervision of the internal syste m of enterprises,improve the internal control audit work of accounting firms and attach importance to the construction of a team of certified public accountants to create well development environment for companies in China.The case study is reference for audit practice.