Research On Audit Failure And Countermeasures Of Government Grants In Annual Audit Of Listing Corporation

Government grants as the main means of direct government intervention in the economy,not only can provide funds for the development of specific industries and regions,but also can promote the adjustment of industrial structure in China.But with the coverage of government grants gradually expanding and the amount of government grants gradually rising,some enterprises began to use the government grants to change the structure of corporate profits.Not only in the administrative penalty notice of China Securities Regulatory Commission(CSRC),but also in the accounting information announcement of the Ministry of Finance and the audit results announcement of the Audit Commission,we can see part of the listed companies use the government grants to regulate the corporate profits.The listed companies as an important part of China's market economy,the disclosure of accounting information in the listed companies has a great impact on the development of China's capital market.If the CPA audit failure in the audit of the listing Corporation,not only will affect the reputation of the audit industry,but also directly affect the economic interests of the majority of investors.According to the audit failure cases appearing in China' s capital market,the occurrence of the vast audit failure cases in listed companies are due to the deliberate management fraud.Therefore,in the first place,this paper analyzed the motivation of government grants fraud in China's listed companies,and summarized the main means of government grants fraud according to the specific cases in our country.Secondly,this paper put forward specific suggestions of CPA audit measures for the government grants fraud,the CPA should analyze the fraud motivation and understand the composition or the main source of the corporate profits,and inspect the related documents of government grants effective.If CPA had some questions about the government grants,he can communicate with government departments timely or confirm to the government departments directly.CPA should pay attention to the accuracy of confirmation and measurement in government grants and the accuracy and completeness of the disclosure for government grants.CPA also need to pay attention to the other special government subsidies,like relocation compensation and investment subsidies.When necessary,CPA can also use the work products from the legal adviser and outside experts.Then,this paper combining the audit failure case of Asia Pacific Group for Lotus Gourmet Powder,analyzed the motivation and means of government subsidies fraud in this enterprise,analyzed the audit failure causes of this accounting firm,and put forward the improving measures for the CPA audit procedures which exist obvious insufficient.Finally,this paper emphasized the importance of strengthening service quality control system establishment for the accounting firm.In order to avoid audit failure for listed companies in annual audit effectively,we should maintain the independence of the CPA and improve the auditor's professional competence constantly.In addition,our country should also improve the listing Corporation's government subsidy regulatory system,reducing the chance of government subsidies fraud in listing corporations.