Research On Audit Evaluation Of Going Concern Ability Of Real Estate Enterprises

As the pillar Sex industry of China’s economy,the real estate industry has long stimulated economic development and made great contributions to promoting employment and improving people’s livelihood.However,in the process of rapid development and expansion,various risks,financial attributes,and governance issues of real estate enterprises are becoming increasingly apparent,and the healthy development of the entire industry is highly valued by the country.In order to prevent risks and further regulate the market,the country has successively introduced a series of regulatory policies,resulting in high leverage real estate enterprises having nowhere to hide.In recent years,as China’s real estate industry enters a stage of adjustment,some blindly expanding real estate enterprises have experienced serious debt crises,frequent bond defaults,and gradually fallen into operational difficulties.The problem of Going concern capability is apparent.Several real estate enterprises have received inquiries from regulators on Going concern capability,which has had a significant negative impact on the financial system and the real economy,which also puts forward higher requirements for the audit of Going concern capability.However,at present,there is a lack of a systematic and perfect audit evaluation system for the Going concern capability audit of real estate enterprises,which seriously restricts the development of Going concern audit practice,and is not conducive to improving the audit quality of real estate enterprises and the steady and healthy development of the real estate market.Based on the above analysis,it is determined that the research purpose of this thesis is to build a systematic,comprehensive,scientific and feasible audit evaluation system for Going concern capability of real estate enterprises.To sum up,this thesis first analyzes the current status of Going concern audit of real estate enterprises,points out the limitations of audit evaluation of Going concern capability of existing real estate enterprises,and constructs targeted audit evaluation indicators of Going concern capability of real estate enterprises in combination with the characteristics of the real estate industry.The optimized audit evaluation system includes four indicators: policy,operation,finance,and management.Then,questionnaire survey and Analytic Hierarchy Process are used to determine the weights of various indicators in the evaluation system,forming a complete audit evaluation system.Finally,taking T Group,the first thunderous real estate enterprise to experience bond defaults,as an example,the application of the evaluation index system for the continuous operation ability audit of real estate enterprises is carried out.The evaluation conclusion is drawn using the fuzzy comprehensive evaluation method,and suggestions are proposed for future certified public accountants to audit and evaluate the continuous operation ability of real estate enterprises.Research has found that the existing audit evaluation system focuses more on financial indicators and slightly neglects non-financial indicators.Financial indicators mainly evaluate the company’s ability to continue operating based on profit indicators,with less analysis of cash flow indicators and a lack of evaluation indicators for real estate enterprises.In recent years,there have been issues in the audit of T Group by the accounting firm,such as incomplete identification of uncertain matters,failure to implement necessary audit procedures for the management’s evaluation report,and lack of appropriate audit evaluation methods for going concern capabilities.In the study on the evaluation of T Group’s ability to continue operating based on the audit evaluation system constructed in this thesis,it was found that the degree of impact on T Group’s ability to continue operating is sequentially financial indicators,operational indicators,policy indicators,and management indicators.T Group mainly faces operational problems such as debt repayment,inventory backlog,weak sales,and bond defaults.I hope that the evaluation system constructed in this thesis can play a certain reference role in the audit practice of real estate enterprises,help improve the audit evaluation level of the continuous operation ability of listed real estate enterprises by certified public accountants,improve the information content of audit reports,and promote the good operation of real estate enterprises and the economy and society.