Analysis And Countermeasures On Audit Risk Of Environmental Protection Enterprises

Green development has become an important theme in the current stage,and the development of the environmental protection industry has also received increasing attention.In recent years,there have been cases of financial fraud and even delisting by some environmental protection companies,which have put forward certain requirements for the auditing agencies and regulatory authorities of environmental protection enterprises.The problem of debt scale causing the breakage of capital chain of listed companies in the environmental protection industry has been frequent,and the related party transaction issue during the listing process has also been of concern.Currently,there is relatively little research on audit risks of the environmental protection industry,so it is of practical significance to explore audit risks of environmental protection enterprises.The business model and development status of Tus Environment have a certain representative significance in the environmental protection industry,and the issues of inflated construction projects and related party fund use that have been exposed are also closely related to the characteristics of environmental protection enterprises.We can analyze the audit risk points of Tus Environment and explore how to deal with the audit risk of environmental protection enterprises.By analyzing the status of the environmental protection industry and the characteristics of environmental protection enterprises,this paper obtains the factors affecting the audit risk of environmental protection enterprises,and then makes a specific analysis of the audit risk points of the case company,providing theoretical reference for the practical work of auditing environmental protection companies and improving the identification and countermeasures of audit risks of environmental protection enterprises to reduce audit failures.Based on the literature research in the field of audit risk,this paper explores the audit risks of environmental protection enterprises and case companies from the perspective of certified public accountants,and draws the following conclusions:(1)The risk of material misstatement on level of financial statement of environmental protection enterprises is mainly affected by business strategy,management ability,internal control and sustainable operation ability;The risk of material misstatement on level of assertion mainly comes from the recognition of revenue and cost,the impairment of projects under construction and accounts receivable.Inspection risk is limited by audit resources and CPA professional competence.(2)The risk of material misstatement on level of financial statement of Tus Environment includes external environmental risk,strategic risk,internal governance risk,sustainable management risk and the risk of funds occupied by related parties;The risk of material misstatement on level of assertion include inaccurate revenue cost accounting and delayed recognition of impairment of accounts receivable in construction projects;Inspection risks come from weak independence of certified public accountants,poor execution of audit procedures and lack of quality control of accounting firms.(3)Based on the analysis of the case,measures for dealing with audit risk of environmental protection enterprises are proposed from the perspectives of certified public accountants and external supervision:paying attention to external environmental risk of environmental protection enterprises,focusing on the business strategy,internal governance and going-concern ability,and conducting a key check of construction in progress and accounts receivable;reducing inspection risks by enhancing the professional ability of auditors and strengthening the quality control of accounting firms;improving external supervision by standardizing the information disclosure system of environmental protection enterprises and strengthening project management.