Non-recurring Profit And Loss Audit Issues And Responses

In recent years,non-recurring gains and losses have become a major regulatory indicator in China's capital market,affecting investors' evaluation of the company's ability to continue operations and future cash flows.Listed companies began to frequently use non-recurring profit and loss to decorate their statements.In 2017,287 companies turned losses into profits due to non-recurring gains and losses,and got rid of the predicament of delisting risk warnings.There are also 16 *STs that already have delisting risk warnings.The stock successfully “capped” with non-recurring gains and losses.In 2018,the CICPA talked about Dahua Certified Public Accountants,suggesting that in recent years,companies frequently use non-recurring gains and losses to regulate profits,and non-recurring gains and losses have higher audit risks.In addition,when the CPA audits non-recurring gains and losses,there are problems such as insufficient attention to non-recurring gains and losses,insufficient analytical procedures and letters of credit,and lack of diligence.CPAs and accounting firms are accused of audit failures.The number of penalties is also on the rise.This paper first introduces the research background and research significance of the article,and combs the research status of non-recurring gains and losses at home and abroad.Then it expounds the connotation,extension,classification and characteristics of non-recurring gains and losses,compares non-recurring gains and losses with government subsidies,and describes theories related to non-recurring profit and loss audits.By counting the number of companies that were punished by the Securities and Futures Commission in the past five years and in 2009-2013 for fraudulent use of non-recurring gains and losses,it was found that the failure of non-recurring profit and loss audits showed an upward trend.Four cases were selected from the 18 companies that were investigated and punished by the China Securities Regulatory Commission in the past five years as a case.The situation of these four companies and their punishment by the Securities and Futures Commission were introduced through the chart.For the selected four companies,the problems of CPAs during the audit were analyzed,including: non-recurring profit and loss as the focus of the audit,inadequate implementation of the analytical procedures for income,and insufficient and appropriate audit evidence.Since non-recurring profit and loss is a regulatory indicator,it contains more specific projects,different business scopes of different enterprises,and there are also differences in specific projects included in non-recurring gains and losses.Therefore,in order to reduce the audit risk of non-recurring gains and losses,it requires the joint efforts of certified public accountants,regulatory agencies and audited entities.The audited entity shall correctly define the connotation of non-recurring gains and losses and accurately disclose the non-recurring profit and loss information of the enterprise;the regulatory body shall improve the non-recurring profit and loss laws and regulations and improve the non-recurring profit and loss related system;the certified public accountant shall improve the professional ability and increase the risk.Consciousness,summarizing the problems that arise in the audit,the auditors should also fully identify the non-recurring gains and losses that have significant doubts about the company's ability to continue to operate.It is hoped that through the joint efforts of all parties,the company will eliminate the use of non-recurring gains and losses to whitewash profits,so that report users can accurately judge the business capability of the company through the financial reports disclosed by the company.