Research On Audit Risk Of Work In Progress In *ST Linzhou Heavy Machinery Group From The Perspective Of Cognitive Psychology

Many cases of audit failure are closely related to the implementation of construction work in process auditing procedures,and the failure of that has become an important cause of financial information distortion and audit quality decline,so how to effectively deal with the risk of audit failure in construction work in process has become a key issue that can not be ignored in the CPA industry.Mistakes in the audit procedures in construction work in process will not only lead to the failure of the audit,but also cause a series of adverse chain reactions to the multi-party subjects involved in the audit of the construction work in process.Therefore,to ensure the high quality of auditing industry,it is an important measure to standardize the development of construction work in process auditing.In order to accurately and comprehensively understand the current situation of the construction work in process auditing risks of machinery and equipment manufacturing enterprises in China,and put forward effective measures for reference,this thesis takes the case analysis as the researching method,and takes the problem of improper implementation of the audit procedures as the object to studies the identification and response to the failure risk of auditing construction work in process.If the existing audit risk research framework is used for analysis,such as the COSO-ERM framework,it is a more superficial analysis of the violations of the audit subject and audit object.In this thesis,cognitive psychology is introduced,focusing on the violations of certified public accountants,and is not limited to the behavior itself,but from the perspective of cognitive psychology,to find out that auditing standards still occur when certified public accountants use auditing standards as their work guide.deep-seated reasons for failure.It is worth mentioning that this thesis does not intend to exclude other factors such as collusion,but mainly analyzes audit risk from the perspective of cognitive psychology.First of all,this thesis combines the relevant theories of audit procedures and the perspective of cognitive psychology of auditing judgment and risk theory to constructs a main research framework based on the limited nature of audit judgments,the perceptual neglect and selectivity of cognitive processes,the processing deviations,and the unstable quality of audit judgments caused by differences in auditor experience.At the same time,it combines the framework elements with the actual problems,and analyzed the specific performance and causes of the audit procedures,and finally countermeasures were proposed for the problems.Through the case analysis,this thesis found the following problems: the limited nature of the audit judgment such as failure to fully assess the risk of material misstatement and reasonably assess the internal control environment of the enterprise;the existence of perceptual neglect and selectivity is reflected in the fact that the implement is not consistent with the contract agreement,and vital original documents such as invoices were not found;the processing deviation of the information process is reflected in the supervision procedures of the construction work in progress was out of control,and the risk of huge number of the construction work in progress transfers at the end of the year were not paying enough attention.The difference in auditor experience leads to unstable audit judgment quality.After identifying the problems existing in the audit process of the construction work in progress,the countermeasures were put forward from the perspective of the impact that cognitive information processing on the audit risk: in order to improve the stability of the audit judgment,it is necessary to fully assess the risk of major misstatement of the enterprise,and it is recommended that the enterprise optimize the internal control environment in a targeted manner;in order to understand the audit process,it is necessary to reasonably pay attention to the difference between the contract performance and the agreement,and the incompleteness of the drawing of attachments;in the process of information processing,it is necessary to comply with the implementation of the supervision.Appropriate attention should be paid to the risk of the construction work in progress;a reasonable judgment framework is established in terms of stabilizing quality judgment standards,scientific evaluation standards are formulated,collective judgments are actively used,and quality control of audit subjects is strengthened.