What should be the reasons for audit failure and countermeasures essay? Here I will give you an audit failure reasons and countermeasures paper!
Abstract: Auditing itself is a profession with a certain risk, the changes in the social environment so that the risk factors it faces more complex, the risk exists in the entire audit activity, can be controlled, but can not be completely eliminated. The article combines many years of auditing experience, to explore the causes of audit risk, and put forward preventive measures.
Keywords: audit risk; causes; prevention
First, the audit risk and the reasons
Audit risk is the audited unit of financial income and expenditure of the existence of major errors and fraud and the auditors did not find that the possibility of making inappropriate audit opinions. Audit involves a wide range of content and complexity, strong policy, social impact, resulting in audit risk is multifaceted, both subjective and objective aspects of the reasons.
(1) The authenticity and integrity of the audited unit's accounting information is the subjective cause of audit risk. If the accounting information provided by the audited unit is false or inaccurate, coupled with the leadership of the audited unit and the financial staff of the low social morality and professional ethics, intentional fraud and deception, then the auditors on this basis to implement the audit concluded that it is certainly wrong or inaccurate.
(2) audit resources and audit tasks of the contradictions arising from the audit risk. With the rapid development of the economy and society, the party committees at all levels, the government arranged to audit the work of more and more institutions, grass-roots auditing institutions, less staff, time, heavy task, the national economic policy, the market environment, the industry differences and the financial system changes quickly, the auditors in order to complete the audit task in a timely manner, and sometimes even in a passive coping with the situation, can not be all, the possibility of failure to observe it also increased, and thus audit findings bias. The audit of the audit findings of the possibility of bias also increased, leading to the objective causes of audit risk.
(3) the limitations of the audit method and the formation of risk. In accordance with the provisions of the audit law, the audit of the means of enforcement is the audited unit to provide accounting and related information to review the inspection, the relevant personnel to carry out inquiries and investigations, can not take more improper audit means. The reality is that many disciplinary cases must be by the discipline inspection and supervision, public security, finance, tax authorities and other departments to cooperate, the use of each unit's functional means to complete, in particular, the leading cadres of the economic responsibility of the audit, only by the auditors to access the information and the parties involved in the questioning, investigation is difficult to reveal, and thus the economic responsibility of the audit work has brought a greater risk of hidden danger.
(4) Auditors of the comprehensive business quality directly affect the audit risk. If our auditors are not high quality comprehensive business, audit ability is not enough, not familiar with policies and regulations, strong language, written expression and comprehensive analytical skills and computer audit technology. It will seriously constrain and affect the quality of audit work, thus increasing the possibility of audit risk.
(5) audit results of improper handling of the audit risk. Audit results is the auditor through access to relevant information provided by the audited unit, to the relevant units and personnel to understand the investigation after the formation of the audit conclusions, including audit characterization, evaluation, handling penalties and audit recommendations to deal with the inaccurate or inappropriate will produce audit risk.
(6) the potential for audit risk, or the auditors in the implementation of the audit process did not pay attention to some of the issues that lead to the generation of risk. This risk is not the auditor intentionally, but the auditor inadvertently accepted the audit risk, but also inadvertently bear the serious consequences of the audit risk. If the auditor due to some kind of self-interest intentionally make and factual inconsistency of the audit conclusions, and this behavior itself by the professional ethics of the condemnation, should be held legally responsible. But as long as we can correctly recognize, understand and analyze the causes of audit risk, take positive and effective measures to minimize audit risk.
(1) change the concept, strengthen the awareness of risk. The Constitution clearly stipulates that China has implemented the audit supervision system, the audit authority in accordance with the provisions of the law to independently exercise the right to audit supervision, supervision of financial and fiscal revenues and expenditures of the true, legal and effective. Auditors should recognize the responsibilities, clear objectives, and further enhance the sense of responsibility and sense of mission, keep pace with the times, and effectively change the concept, further strengthen quality control, strengthen risk awareness, in order to make our auditing career healthy development.
(2) overall, rationalize the audit project plan. Audit risk from the beginning of the audit project plan to the end of the audit may arise, the audit authority should be based on the statutory audit duties and audit jurisdiction, in line with the service of the overall situation, around the center of the government's work, highlighting the audit focus on the principle of reasonable arrangements, select a representative, universal and importance of the project, to seize the economic and social undertakings in the development of key points, hotspots, difficult issues in the key areas, key funds, Major construction projects are audited in order to give full play to the function of audit supervision, in order to minimize the audit risk.
(3) risk assessment, scientific preparation of the implementation program. Audit implementation program is to ensure that the audit work to achieve the expected goals of the program. The audit team should be based on the functions of the audited unit, responsibilities, the establishment of internal control systems and the audited unit leaders and financial personnel on the level of competence in financial management, the implementation of the conscientiousness of the financial discipline, previous audits and other financial inspection of the audit risk analysis, consider a variety of issues that may occur to prepare a variety of measures to respond to the focus of the clear work and ideas, to develop a scientific, specific, targeted and highly operational and develop a scientific, specific, targeted and operable audit implementation program. And in the audit implementation process in accordance with the relevant circumstances of the timely adjustment, as early as possible to predict the audit risk.
(4) rigorous and meticulous, on-site auditing is clear. The audit team from the beginning of the point of entry, in strict accordance with the audit procedures, audit quality control and audit guidelines and other systems for audit. According to the pre-audit investigation to understand the situation, in the audit implementation process, to be careful, practical, meticulous, rigorous and meticulous investigation, analysis, discussion, evidence. In the complicated accounting information, from an improper accounting treatment or an incomplete original documents, and even from the safe cabinet out of a note and so on to find some clues, to make a breakthrough. Each audit matter to do in-depth and detailed, to achieve the facts are clear, solid evidence, accurate characterization, appropriate treatment, complete procedures, legal procedures. Auditors can only be rigorous and meticulous in order to be clear, in order to find doubts and major clues to find problems, in order to ensure that the audit results can withstand the test, thereby reducing the audit risk.
(5) Strictly check, layer by layer hearing review. Audit review is an important line of defense for audit institutions to avoid audit risk, to ensure that each audit project through the audit team leader (auditor-in-chief), business unit (office) responsible for the leadership and full-time reviewers of the audit implementation program, audit working papers, audit evidence materials and audit reports, audit opinion, audit decision, audit recommendations, referrals, etc., in strict accordance with the audit guidelines for trial review, including audit procedures are strictly standardized, the audit process is not a good idea. It includes whether the audit procedures are strictly standardized, whether the audit records are clear, whether the audit evidence materials are true and complete, whether the audit evidence is sufficient and reliable, whether the audit objectives are achieved, whether the facts of the problems are clearly and accurately revealed, whether the cited laws and regulations are correct and effective, whether the opinions on treatment and punishment are appropriate, and whether the audit recommendations are in line with the reality of the management of the audited unit's financial revenues and expenditures and the written review opinion is submitted to prevent the audit team from being involved in the audit. The review of the statement of opinion is an important means of preventing audit risk.
(6) adhere to the principle, dare to be tough. Audit for the country, the benefit of the people, only through audit supervision to expose contradictions, promote integrity building, major violations and economic crimes, must have a righteousness, not afraid to offend, adhere to the principle, selfless, dare to be tough, just not ah, a check to the end, never back down! Only in this way can we give full play to the function of audit supervision, reflecting the value of the existence of the audit authority; in order to solve problems, promote reform, promote development, and really for the people to do practical things, do a good job, to prevent the audit risk.
(7) Strengthen learning and improve the overall quality of personnel. Auditors should strengthen the party and state guidelines, policies, political theories and laws, regulations and business learning and training, drawing on the experience of advanced developed regions and technical methods, to grasp the pulse of economic and social development. Only to improve the comprehensive business quality of the auditors, to create a politically qualified, superb business, excellent style of auditing iron army, in order to adapt to the needs of the development of the new situation, in order to comprehensively improve the quality of the audit work, reduce the audit risk to provide the prerequisites.
(8) Integrity from the trial, establish a pragmatic style. Style construction is always on the road, the audit authority must be long-term unremitting to grasp the style of construction. Auditors must set up a pragmatic, rigorous and meticulous style of work, resolutely implement the party and the country's various clean government system, audit? Eight forbidden? Discipline, always keep a clear head, tolerate poverty, withstand temptation, withstand the test, establish a correct world view, outlook on life, values. Often do self-respect, self-policing, self-motivation, self-discipline, consciously improve the ability to resist corruption, to reduce audit risk to provide assurance.
References:
[1] An Yaren. Auditing [M]. Renmin University of China Press.
[2] National Auditing Standards of the People's Republic of China [S].
[3] Bai Yulin. Reducing Audit Risks and Improving Audit Quality [Z].