A Case Study On The Integrated Audit Of R Company By T Accounting Firm

After the Enron incident broke out in 2001,the United States Congress issued SOX act,which requires the implementation of internal control audit on listed companies.After that,many countries such as Japan have also introduced relevant laws and regulations on internal control.In order to meet the regulatory requirements of the international capital market and at the same time to make the internal control of domestic enterprises play an effective role,in2008,the Ministry of Finance of China issued the basic norms of internal control of enterprises,in 2010,the Ministry of Finance jointly issued the guidelines on the application,audit and evaluation of internal controls of enterprises.Since 2011,China has also issued a series of practical documents,such as the guidelines for internal control audit of enterprises issued by the Chinese Association of certified public accountants,Notice on the implementation of enterprise internal control standard system by categories and batches of main board listed companies in 2012 issued by CSRC.In 2015,the answers to internal control audit questions of enterprises issued by Chinese Association of certified public accountants,the guidance on internal control of investment banking business of securities companies issued by CSRC.Regulations on internal audit issued by the Audit Office in 2018.These documents not only provide relevant basis for the construction of China’s internal control system,but also provide help for the internal control audit work of the firm.Because the implementation procedure of internal control audit coincides with the audit of financial statements,The integrated audit in the implementation process is advantage to reducing audit cost,improving work efficiency and reducing audit risk.The integration of the two has become the general trend of audit business at this stage,but there are no clear regulations on the specific operation methods and audit procedures in the audit guidelines of our country,which brings some difficulties to auditors in practical operation and disadvantage to the long-term development of integrated audit.Therefore,from the perspective of the accounting firm,it is practical significance to explore the operation process of integrated audit by using integrated audit cases.This paper is based on literature research and case study,it mainly introduces the related concepts and theoretical basis of integrated audit,expounds the basic situation of T accounting firm and R company,relationship between T accounting firm and R company,byanalyzing the operation process of T accounting firm’s integrated audit of R company,the paper finds out the problems and causes in the process of T accounting firm’s integrated audit.The main problems in the stage of audit plan are unreasonable preliminary schedule,risk assessment when audit business is ignored and unreasonable audit subject;the main problems in the stage of audit implementation: the audit plan is not modified in time,the audit method is not used normally and the internal control audit is just in form;the main problems in the stage of audit completion are T accounting firm the review on the project manager level is not paid enough attention and lacks mutual verification and communication.For the causes of the problems,this paper is divided into internal reasons and external reasons.The internal reasons mainly include the defects in the structure of auditors,the lack of attention paid by T accounting firm to internal control audit;the external reasons are the lack of details of the national audit operation process.In view of the above problems and causes,this paper proposes targeted improvement suggestions based on the actual situation of T accounting firm.In the stage of audit plan stage,it is suggested to reasonably plan the preliminary time,establish a quality oriented T accounting firm culture,enhance the risk awareness of the auditors,optimize the auditor structure of the T accounting firm,reasonably allocate the auditors of the project team;in the stage of audit implementation,it is suggested to implement the audit plan approval system,flexibly match the application of audit methods,and implement the integrated audit idea with internal controls as the main line;in the stage of audit completion,it is suggested to strictly implement the review system and establish the audit quality accountability mechanism,the emphasis on information verification and communication.Through the above suggestions,we hope to provide some work guidance for T accounting firm to carry out integrated audit in the future,and also provide some reference for other accounting firms to carry out integrated audit.