Study On Strategy Of The Audit Risk Of Financial Statement Consolidation Scope

With the rapid development of economic globalization,the wave of merger is becoming more and more intense worldwide.Listed companies frequently purchase,dispose of subsidiaries,so,as the basis and premise of the audit of the consolidated financial statements,the audit of the scope of the consolidated financial statements is particularly important.Accounting standards for business enterprises no.33-consolidated financial statements in China has undergone two revisions in 2006 and 2014,and the judgment standard for the scope of merger has also achieved international convergence.The judgment criterion of material control breaks through the obstacle between consolidated financial statement and accounting objective and accords with the economic essence of decision usefulness.But the new accounting standards still have shortcomings;in the actual operation has a greater flexibility,for the enterprise by adjusting the scope of merger manipulation profit leaves a greater room for adjustment.It increases the difficulty of CPA’s work and challenges the audit of the scope of merger.Therefore,this paper carried out a study on the audit risk of consolidation scope.Firstly,this paper introduces the background and significance of the research,and summarizes the relevant literature and materials at home and abroad.Secondly,through the study of the theoretical basis and institutional changes of the scope of financial statement consolidation,the paper deeply analyzes the influence of the "control" standard proposed by the new standard on the scope of consolidation.Then combined with the punishment cases of the merger scope of the CSRC in recent six years and the interview content of the audit work of the 2016 annual report of the Chinese institute of certified public accountants,this paper analyzes and summarizes the main problems existing in the consolidated scope of listed companies’ consolidated statements,and puts forward the necessity for certified public accountants to audit the consolidated scope.Then,taking the merging scope audit of company A as the main case,this paper analyzes the problems existing in the process of CPA’s merging scope audit,and puts forward targeted audit countermeasures and Suggestions.Through the study found that certified public accountants fail to pay high attention to the risks in the combined scope audit business,in practice,lack of due professional skepticism and prudent attitude towards abnormal phenomena,fail to fully understand the real purpose of the change of the combined scope of the audited entity,and fail to fully fulfill the supervision function of the third party and provide reasonable protection for users of financial statements due to obvious omissions in the audit procedures.According to the above problem,this paper puts forward targeted audit strategies from the aspects of CPA’s audit concept,the selection and implementation of audit procedures and professional competence,including: fully recognizing the importance of consolidation scope audit,implementing targeted analysis procedures,judging the rationality of consolidation scope changes by combining inquiry and inspection procedures,improving their professional judgment ability,etc.In order to help CPAs in the next consolidation scope audit work,improve audit quality and reduce audit risk.