Research On The Risk And Control Of Correspondence Procedure

In recent years,there have been many cases of audit failure due to the failure of correspondence procedures in financial statement audits,and the risks associated with correspondence are increasing.The update and supplement of the system specification can control the risks related to bank correspondence to a certain extent,but the practice situation is complex and changeable,and it cannot guide to deal with all the difficulties and risks encountered in the process of correspondence;while the system specification related to correspondence of current payment has been in the absence of state,and the lack of rigid constraints of the system also makes the correspondence of current payment more problematic and riskier.Therefore,bank correspondence and current account correspondence are the focus of this paper.Based on risk-based audit theory and audit conflict theory,this paper analyzes the institutional mechanism risk,execution risk and fraud risk associated with correspondence,and then analyzes the risk control of correspondence procedures from the execution level and institutional level,and fully discusses the risks and risk control of correspondence procedures from the theoretical point of view.This paper focuses on normative research and sorts out the current status of research on the risk and control of correspondence procedures by summarizing and summarizing the literature related to correspondence at home and abroad.Then,taking the administrative penalty decisions of 34 accounting firms punished for violating the letter audit standards from 2012 to 2022 as samples,we analyze the relatively concentrated risky issues and the overall implementation status of the letter procedure in the past ten years,and on this basis,we take the letter procedure in the annual report audit of Lanshan Technology Co.by Zhongxing Cai Guang Hua as the research object,and make an in-depth analysis of the entire letter procedure implementation process of Zhongxing Cai Guang Hua.Finally,based on the perspective of the three parties responsible for the correspondence,the above analysis proposes measures for risk control applicable to the implementation of all correspondence procedures to improve the quality and effectiveness of the existing correspondence procedures.At the same time,by summarizing and sorting out the current status of research and application of digital platform for correspondence,we build and plan an electronic correspondence platform for correspondent enterprises,with a view to providing guideline and help to auditors in the execution of correspondence procedures to a certain degree,so as to standardize the process of correspondence procedures and provide new ideas for the digital transformation of correspondence.Through theoretical analysis and case study analysis,this paper mainly obtains the following conclusions: First,this paper classifies the risks leading to the failure of the correspondence procedure into institutional mechanism risk,implementation risk and fraud risk;Second,the risky implementation of the current correspondence procedure in the annual report audit is relatively concentrated,and the risk performance of the accounting firm in the implementation of the correspondence procedure is mainly focused on the implementation of the pre-certification planning,implementation and evaluation.Third,the risk control measures of the correspondence procedure can be started from the three parties of the correspondence procedure,and the application of the electronic correspondence platform can optimize the control of the correspondence procedure,which can effectively reduce various execution risks and fraud risks related to the correspondence procedure.