Accounting audit is an important means to maintain the good operation of accounting. Cooperate with bank investigation, improve company information and company tax, provide financial report and tax payment certificate, and prove that the enterprise is operating legally.
Failure to submit within the time limit may affect the use of bank accounts and may lead to the freezing of accounts;
2. Prove that the enterprise operates legally, which is conducive to enhancing credit.
Accounting audit can reflect the normal operation of the company, including legal information with business partners, explain the legal operation of the company, and avoid random checks by banks. Banks will review the audit reports of customers over the years when opening letters of credit to customers, and decide to grant credit lines to customers accordingly;
3, enterprise financing, financing, listing basis
Many foreign investors need enterprises to provide past accounting and auditing records when investing, so as to fully understand the background and strength of the company and consider whether to cooperate or provide services.
Therefore, a good audit report can not only reflect the legal operation of enterprises, but also reflect the economic strength of enterprises, which is an important basis for financing, fund-raising and listing of enterprises;
4. Establish friendly relations with the government to promote enterprise development.
Doing an annual audit report well will promote the company and the government in the future;
If you have an audit report and tax payment certificate, you can apply for a half-price discount on booth fees given by the Hong Kong Trade Development Council.
5. Improve the quality of enterprise management and protect shareholders' rights and interests.
Doing accounting and tax returns every year and keeping good accounting and auditing records are conducive to future accounting and company management. At the same time, audit can improve the quality of enterprise management, improve the internal control system and protect shareholders' rights and interests.
Extended data
The process of auditing
The audit process can be roughly divided into the following stages:
1, accepting business entrustment
An accounting firm shall prudently decide whether to accept or maintain a certain customer relationship and specific audit business according to the provisions of the professional standards. Before accepting the entrustment, a certified public accountant shall have a preliminary understanding of the auditing business environment.
Including the business agreement, the characteristics of the audited object, the standards used, the needs of the expected users, the relevant characteristics of the responsible party and its environment, and other matters that may have a significant impact on the audit business, transactions, conditions and practice.
Certified public accountants can only undertake audit business after they know that they meet the requirements of professional competence, independence, due attention and other professional ethics, and the business they undertake has the characteristics of audit business.
If the scope of the audit business is greatly restricted, or the client tries to improperly associate the name of the certified public accountant with the audited object, the business may have no reasonable purpose. The main tasks in the stage of accepting business entrustment include: understanding and evaluating the auditability of the audited object; Decide whether to consider accepting the entrustment; Agree on the terms of the business agreement; Sign an audit engagement letter, etc.
2. Plan the audit work?
A planned audit is very important. Poor planning will not only lead to the blind execution of audit procedures, but also reduce the audit risk to an acceptable low level without obtaining sufficient and appropriate audit evidence, which will affect the realization of audit objectives, waste limited audit resources, increase unnecessary audit costs and affect the efficiency of audit work.
Therefore, for any audit business, certified public accountants must specify a scientific and reasonable plan according to the specific situation before implementing the specific audit procedures, so that the audit business can be effectively implemented. Generally speaking, the planned audit work mainly includes: the preliminary business activities carried out at the beginning of the current audit business;
Formulate the overall audit strategy; Formulate specific audit plans, etc. Planned audit is not an isolated stage of audit business, but a continuous and constantly revised process, which runs through the whole audit business.
3, the implementation of risk assessment procedures
Auditing standards stipulate that certified public accountants must implement risk assessment procedures as the basis for assessing the risk of material misstatement in financial statements and identification. The so-called risk assessment procedure refers to the procedure implemented by certified public accountants to understand the audited entity and its environment and identify and evaluate the risk of material misstatement in financial statements.
Risk assessment procedure is a necessary procedure, and understanding the audited entity and its environment provides an important basis for certified public accountants to make professional judgments in many key links.
Understanding the audited entity and its environment is a continuous and dynamic process of collecting, updating and analyzing information, which runs through the whole audit process. Certified public accountants should use their professional judgment to determine the extent to which they need to know the audited entity and its environment.
Generally speaking, the main tasks of implementing risk assessment procedures include: understanding the audited entity and its environment; Identify and evaluate major misstatement risks at the level of financial statements and various transactions, account balances and presentation, including determining major misstatement risks that need special consideration (i.e. special risks) and major misstatement risks that cannot be handled only through substantive procedures.
4, control the implementation of testing and substantive procedures
It is not enough for certified public accountants to carry out risk assessment procedures to provide sufficient and appropriate audit evidence for expressing audit opinions. Certified public accountants should also implement further audit procedures, including the implementation of control tests (when necessary or when deciding to test) and substantive procedures.
Therefore, after assessing the risk of material misstatement of financial statements, certified public accountants should use professional judgment to determine the overall response measures to the assessed risk of material misstatement of financial statements, and design and implement further audit procedures for the identified risk of material misstatement of financial statements, so as to reduce the audit risk to an acceptable low level.
5. Complete the audit work and prepare the audit report.
After completing the further audit procedures of all financial statements, certified public accountants should also do a good job in the audit completion stage in accordance with relevant auditing standards, make rational use of professional judgment, and form appropriate audit opinions based on all kinds of evidence obtained.
The main tasks of this stage are: auditing the opening balance, comparative data, later events and contingencies; Consider going concern and obtain management statement; Summarize the audit differences and submit them to the audited entity for adjustment or disclosure; Review audit working papers and financial statements; Communicate with management and governance; Evaluate audit evidence and form audit opinions; Prepare audit reports, etc.
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