Research On Internal Control Audit Of Sales And Receipt Cycle

China began to require listed companies to disclose internal control audit reports in 2011,in recent years,internal control audit business has gradually been paid attention in China,and more and more internal control problems have been exposed.As the internal control of listed companies is reflected in the internal control audit report,in the business field with internal control deficiencies,sales business and capital activities occupy the main position in 2018.On the basis of the risk-oriented audit model,audit resources should be concentrated in high-risk areas,so it is necessary to study the internal control audit of sales and collection cycle separately.Firstly,this paper sorts out the relevant literature by using the method of literature research,then summarizes the important concepts and theories used in this paper.Secondly,it analyses the risk points of internal control and the audit concerns of sales and receipt cycle in different industries,and introduces the basic process of internal control audit of this cycle.Then,according to the case study method,this paper selects the audit of TH Company in 2014 as an example.Internal control deficiencies in this company's sales and receipt cycle provide opportunities for financial fraud,however,the accounting firms failed to find this defect through internal control audit and issued inappropriate audit opinions.Consequently the article will find out the problems and reasons in the process of internal control audit of sales and receipts.Finally,the corresponding audit countermeasures are put forward in view of the above problems.CPA should strictly implement audit standards to prevent excessive trust risks arising from continuous auditing,the implementation of internal control audit procedures needs to combine the characteristics of sales and receipt cycle,attention also should be paid to the application of analytical procedures.Accounting firms should control the internal control audit risk of the business cycle from the whole audit business level,it is necessary to consider whether the quality of practice can be satisfied in the stage of business acceptance and maintenance,focus on the follow-up training of CPA,and establishing and perfecting the quality control review system of internal control audit projects,the ultimate goal is to reduce the problems of internal control audit and improve the quality of practice.