Case Study On Z Accounting Firm’s Audit Of B Company’s Bond Issuance

In order to promote the operation and development of the company,the enterprise began to issue corporate bonds,and the bond trading market was booming.However,with the continuous decline of the domestic macro economy,coupled with the immature domestic bond market,the ability to deal with risks is poor,corporate bond defaults occur frequently.As the gatekeeper of bond issuance,bond issuance audit needs to take responsibility for bond issuance,conduct bond issuance audit with a prudent attitude,and maintain the order of bond trading market.As an established enterprise in the water industry,B company had a major default in its corporate bonds issued in 2020.In the subsequent investigation by China Securities Regulatory Commission,B Company was found to have many large adjustments that had a significant impact on the company’s performance and financial statements,major internal control defects and other problems that seriously harmed the company’s business condition,and received the administrative penalty decision written by Shanghai Securities Regulatory Bureau.This thesis takes the audit of B company’s bond issue as a case study,interprets the case from the perspective of Z firm by referring to auditing standards and bond issue rules,analyzes the problems in the audit of B company’s bond issue and their causes,and draws feasible countermeasures and suggestions based on the causes and the key issues in the review of the new revision of Shenzhen Stock Exchange,providing reference for improving the audit of the company’s bond issue.According to the interpretation and analysis of the case,the problems existing in the audit of B company’s bond issuance can be analyzed from the following three aspects:First,Z firm was punished several times for not due diligence in the previous revenue-related audit,which resulted in the lack of professional auditing ability;Second,the auditors of Z firm did not fulfill their responsibilities in the execution of the audit procedures,and the audit process was mere formality and non-standard;Third,Z firm has a cooperative relationship with B company for many years,and the firm lacks independence.In this regard,from the perspective of the firm,this thesis puts forward three countermeasures based on the case study analysis: first,according to the latest revision of the Shenzhen Stock Exchange’s audit priorities,it clarifies the audit objectives of bond issue,clarifies the auditors’ cognition of bond issue audit from the source,and improves the professional competence of the auditors of the firm in bond issue audit;Second,according to the industry characteristics of B company,strictly standardize the audit procedures of auditors in the audit of bond issuance;The third is to abide by the corporate bond issuance audit professional ethics standards,maintain the objective and fair audit attitude of the firm,safeguard the independence of the firm.