Research On Real Estate Enterprise Income Audit Under The New Accounting Standards

In July 2017,the Ministry of Finance promulgated the "Accounting Standards for Business Enterprises No.14-Income"(also known as the new income standard).The new standard proposes many new concepts such as time-based revenue,contract assets,contract liabilities,and compliance progress.Confirmation,measurement and disclosure are more complex than before,and revenue recognition has changed from the previous “main risk and reward transfer” to “control transfer”.Relevant scholars have discussed the impact of this,and everyone generally believes that it has a greater impact on the real estate,telecommunications,and software industries.However,the authors found that the perspective of their discussion is mostly based on accounting,and no one has discussed the impact of the issuance of new accounting standards on auditing.Therefore,this paper takes the X office's income audit of A real estate company as a case,analyzes the impact of the changes of the standard on the audit focus,and proposes corresponding countermeasures and suggestions for the generated risks.The first part of this paper is mainly to understand the current research status of the new criteria applied to the audit by combing the relevant literature at home and abroad,and use this as the writing direction of the following articles.The second part introduces the relevant theories of auditing and real estate enterprise income auditing,which has the characteristics of identifying the complexity of income model,high audit risk,large workload and complicated income related process.In the third part,we describe the new income standard to allow the real estate company's revenue confirmation time to be “advanced”.Due to the existence of “time obligation”,the confirmation of income is not confirmed until the completion of the real estate.If the conditions of the time obligation are met,the income can be confirmed during the construction process.This allows our auditors to consider the impact of the guidelines on the audited entity and its environment,whether internal controls have changed,and how to implement appropriate audit procedures.The fourth part of the article is based on the case of X firm's income audit of Company A.The firm regards the appropriateness of the “time-based income” classification and the accuracy of the performance calculation of the contract as the audit focus,and implements the corresponding audit procedures.The author finds that there are some problems in the income audit of X firm,mainly because the legal counsel who adopted the opinion is insufficiently independent,fails to fully identify the audit risk of the performance of the contract,and fails to implement the letter of delivery of the sales contract and the implementation of the right to receive the payment.The content of the disclosure is not comprehensive and complete.And the reasons for it are elaborated.The fifth part is the suggestion and countermeasures of the accounting firm's income audit of real estate enterprises under the new standard.Objectively analyzes the income fraud factors of real estate enterprises.The phenomenon that the executive compensation is highly correlated with the sales income and has urgent financing needs needs to pay attention to the possibility of fraud.Sex.By assessing the scientific and effective internal control of the audited entity with income,implementing more appropriate audit procedures for changes in the guidelines,focusing on the application of analytical procedures in auditing,reducing audit risk to an acceptable low level,thereby Avoid audit failures.Through the study of the above problems,we find that the application of the new income standard increases the audit risk,which makes the CPA need to pay more attention to the income audit later,and always maintain professional suspicion.At the same time,strengthen the learning of the guidelines and the understanding of laws and regulations.The CICPA should issue relevant guidance as soon as possible to provide operational standards for the practitioners.So far,the author put forward his own opinions and opinions on the application of the guidelines.I hope this article can bring a certain degree of reference and reference to the accounting firms and related practitioners.