Financing and Investment Cycle Audit

Author: Zhu Rong'en
Publisher:
Publish Date: 2004-01-01
Features: In recent years, cases of accounting fraud by listed companies have been frequently disclosed. From earlier cases like "Qingminyuan" to more recent ones like "Zhongtianqin," they have had a very negative impact on the development of the securities market, severely shaking the foundation of trust in the market economy, and leading to continuous criticism from all sectors of society against the relevant certified public accountants. On one hand, we should recognize that establishing and improving corporate internal control systems and issuing true and fair financial reports in accordance with relevant accounting standards is the accounting responsibility of the management of the enterprise. Due to the post-event targeted spot checks adopted by certified public accountants' audits, coupled with the inherent limitations of the client's internal control systems and other objective constraints, it is inevitable that certain important aspects of the financial statements may not be accurately reflected, and the certified public accountant may fail to detect them during the audit. Therefore, the audit responsibility of the entrusted party cannot replace, mitigate, or exempt the accounting responsibility of the client. On the other hand, we should also fully recognize that the current audit environment is extremely severe. If certified public accountants ignore the demands of the public, they will severely damage the image and social status of certified public accountants, thereby threatening the foundation of their survival and development. To address this problem, in addition to strengthening the integrity concept of the entire certified public accountant team from the perspective of professional ethics, our audit technology also faces higher requirements. Accounting firms must enhance risk awareness, strengthen risk control, and improve risk audit technology to consolidate their position in the securities market. It is precisely based on this understanding that we organized the compilation of this series of "Certified Public Accountant Business Operations and Risk Control." The compilation of this series focuses on risk control in practical operations, not only comprehensively covering various business activities of certified public accountants but also emphasizing the risks in each business process and their control measures, hoping to be helpful to all certified public accountants.