Causes and countermeasures of audit failure

Causes and countermeasures of audit failure: how to write a paper? Introduce a paper on the causes and countermeasures of audit failure to everyone!

Abstract: Auditing itself is a profession with certain risks. The change of social environment makes the risk factors it faces more complicated. Risk exists in the whole audit activity, which can be controlled, but not completely eliminated. Based on years of audit experience, this paper discusses the causes of audit risks and puts forward preventive countermeasures.

Keywords: audit risk; Reason; Stay alert

I. Audit risks and their causes

Audit risk refers to the possibility that there are major mistakes and disadvantages in the financial revenue and expenditure of the audited entity, but the auditors have not found out and put forward inappropriate audit opinions. Audit involves a wide range, with many and complicated contents, strong policy and great social influence, which leads to various audit risks, both subjective and objective.

(1) The authenticity and integrity of the accounting data of the audited entity are the subjective reasons for the audit risk. If the accounting information provided by the audited entity is false or inaccurate, and the leaders and financial personnel of each audited entity have low social morality and professional ethics, and deliberately resort to deceit, then the conclusions drawn by the auditors after implementing the audit on this basis must be wrong or inaccurate.

(2) Audit risks arising from the contradiction between audit resources and audit tasks. With the rapid development of economy and society, Party committees and governments at all levels have given more and more tasks to audit institutions. Grass-roots audit institutions have few personnel, tight time and heavy tasks, and the national economic policy, market environment, industry differences and financial system change rapidly. In order to complete the audit task in time, auditors are sometimes in a passive situation, and the possibility of omissions increases, which leads to the possibility of deviation of audit conclusions, thus generating audit risks.

(3) Risks brought by the limitations of audit methods. According to the provisions of the Audit Law, the means of audit enforcement is to audit and inspect the accounting and related materials provided by the audited entity, and to inquire and investigate the relevant personnel, and no improper audit means can be adopted. In reality, many clues of violations of discipline and law must be completed with the cooperation of discipline inspection and supervision, public security, finance, taxation and other departments, especially the economic responsibility audit of leading cadres, which is difficult to reveal only by auditors looking up information and asking the parties involved in the investigation, which brings great risks to the economic responsibility audit.

(4) The comprehensive professional quality of auditors directly affects the audit risk. If our auditors' comprehensive professional quality is not high, their auditing ability is insufficient, and they are not familiar with policies and regulations, language expression and comprehensive analysis ability, and computer auditing technology. It will seriously restrict and affect the quality of audit work, thus increasing the possibility of audit risk.

(5) Audit risks caused by improper handling of audit results. Audit results are audit conclusions that auditors learn from relevant units and personnel by consulting relevant information provided by audited units, including audit characterization, evaluation, punishment and false or improper handling of audit recommendations, which will lead to audit risks.

(6) the potential of audit risk, or the risk caused by some problems that auditors did not notice during the implementation of the audit. This kind of risk is not deliberately done by auditors, but that auditors inadvertently accept the audit risk and bear the serious consequences caused by the audit risk. If auditors deliberately make audit conclusions that are inconsistent with the facts because of some selfish interests, this behavior itself is condemned by professional ethics and should bear legal responsibility.

Second, the prevention of audit risk.

Audit risk has the characteristics of objectivity, universality, potential, controllability and contingency, which runs through the whole process of audit activities. It is impossible to completely eliminate or eliminate audit risks, but as long as we can correctly understand, understand and analyze the causes of audit risks and take active and effective measures to minimize them.

(1) Change ideas and strengthen risk awareness. The Constitution clearly stipulates that China implements the audit supervision system, and audit institutions independently exercise the power of audit supervision according to law to supervise the truthfulness, legality and efficiency of fiscal revenue and expenditure. Auditors should have a clear understanding of their responsibilities, clear objectives, further enhance their sense of responsibility and mission, keep up with the pace of the times, change their concepts, further strengthen quality control and strengthen risk awareness, so as to make our audit career develop healthily.

(2) Overall consideration and reasonable arrangement of audit project plan. Audit risk may occur from the beginning of the audit project plan to the end of the audit. Audit institutions shall, according to the statutory audit responsibilities and audit jurisdiction, adhere to the principle of serving the overall situation, focus on the government's work center, reasonably arrange audit priorities, select representative, universal and important projects, seize the key points, hot spots and difficult issues in the development of economic and social undertakings, audit key areas, key funds and major construction projects, give full play to the function of audit supervision, and minimize audit risks.

(3) Scientific preparation of risk assessment and implementation plan. Audit implementation plan is a procedure to ensure that the audit work reaches the expected goal. The audit team should analyze the audit risk, consider various possible problems, prepare various countermeasures, clarify the work focus and ideas, and formulate a scientific, specific, targeted and operable audit implementation plan according to the functions and responsibilities of the audited entity, the establishment and improvement of the internal control system, the ability level of the leaders and financial personnel of the audited entity in financial management, the consciousness of implementing financial discipline, and previous audits and other financial inspections. In the process of audit implementation, adjustments should be made in time according to the relevant situation, and the audit risk should be predicted as early as possible.

(4) Rigorous and meticulous, and thorough on-site audit. From the beginning, the audit team carried out the audit in strict accordance with the audit procedures, audit quality control and audit standards. According to the pre-trial investigation, in the process of audit implementation, we should verify, analyze, discuss and collect evidence cautiously, pragmatically and meticulously. In the complicated accounting data, we found some clues from an inappropriate accounting treatment or an original voucher with incomplete elements, and even from a note in the safe, and made a breakthrough. Every audit item should be thorough and detailed, with clear facts, conclusive evidence, accurate qualitative analysis, proper handling, complete procedures and legal procedures. Only by being rigorous and meticulous can auditors see through everything, find doubts, problems and major clues, ensure that audit results can stand the test, and thus reduce audit risks.

(5) Strictly check at different levels and review at different levels. Audit review is an important line of defense for audit institutions to avoid audit risks. Ensure that each audit project is strictly in accordance with the audit standards such as audit implementation plan, audit working papers, audit evidence collection materials, audit reports, audit opinions, audit decisions, audit proposals, transfer documents, etc., and is reviewed by the audit team leader (presiding), the person in charge of the business unit (room), the leaders in charge and the full-time judges. Including whether the audit procedures are strictly standardized, whether the audit records are clear, whether the audit evidence is true and complete, whether the audit evidence is sufficient and reliable, whether the audit objectives are achieved, whether the problems are clear and accurate, whether the laws, regulations and rules are correct and effective, whether the punishment opinions are appropriate, whether the audit suggestions are combined with the actual financial revenue and expenditure management of the audited unit, and whether the written review opinions are put forward, are important means to prevent audit risks.

(6) Adhere to principles and dare to be true. Only through auditing and supervision can we expose contradictions and promote the building of a clean government. In dealing with major cases of violation of laws and regulations and economic crimes, we must be upright and upright, not afraid of offending people, adhere to principles, be selfless and fearless, dare to face difficulties, be upright and upright, and never back down after a thorough investigation! Only in this way can we give full play to the function of audit supervision and reflect the value of audit institutions; Only in this way can we solve problems, promote reform, promote development, really do practical things for the people, and prevent audit risks.

(7) Strengthen study and improve the comprehensive quality of personnel. Auditors should strengthen the professional study and training of political theory, laws and regulations of the party and the state, learn the experience and technical methods of advanced developed areas, and grasp the pulse of economic and social development. Only by improving the comprehensive professional quality of auditors and building an audit iron army with political qualification, exquisite business and excellent work style can we meet the needs of the development of the new situation and provide preconditions for comprehensively improving the quality of audit work and reducing audit risks.

(8) Be honest and conscientious, and establish a pragmatic style. Work style construction is always on the road, and audit institutions must persistently do a good job in work style construction for a long time. Auditors must establish a pragmatic, rigorous and meticulous work style, resolutely implement the clean political system of the party and the state, and audit? Eight is not allowed? Be disciplined, always keep a clear head, stand the test of poverty, temptation and establish a correct world outlook, outlook on life and values. Always be self-respecting, self-vigilant, self-motivated and self-disciplined, consciously improve the ability to resist corruption and change, and provide guarantee for reducing audit risks.

References:

[1] Anya people. Audit [M]. Renmin University of China Press.

[2] People's Republic of China (PRC) National Auditing Standards [S].

[3] Bai Yulin. Thoughts on reducing audit risk and improving audit quality [Z].