| In July 2017,the Ministry of Finance issued the revised CAS No.14-Revenue(Finance and Accounting [2017] No.22).CAS No.14-Revenue(Finance and Accounting [2006] No.3)and CAS No.15-Construction Contract(Finance and Accounting [2006] No.3)was incorporated into a unified revenue recognition model,and requires both domestic and foreign listed enterprises as of January 1,2018.Under the new revenue standards,accounting treatment of construction enterprises has changed,and construction enterprises has formed contract assets of significant amount.The recognition and subsequent measurement of contract assets were subject to the subjective influence of management,which has a certain impact on the asset quality of enterprises.Meanwhile,the CPA paid attention to the impairment of contract assets and listed it as a key audit matter.Therefore,based on the modern risk-oriented audit theory,this paper evaluates the audit risk of contract assets of construction enterprises,and puts forward the countermeasures of audit risk.First of all,from three aspects of contract assets 、 audit risk and audit risk of construction enterprises,this paper combs and summarizes relevant studies of domestic and foreign scholars,and finds out the gaps in the current literature.Secondly,the contract assets of construction enterprises are analyzed,and it is found that they account for a high proportion of assets;the value is difficult to estimate;and the proof is difficult to obtain.Based on this,the audit risk of contract assets of construction enterprises is evaluated and analyzed,and the conclusion is that the risk of material misstatement at the statement level should be concerned about the risk of delayed recovery of advance funds under the background of the epidemic and the risk of earnings management under operating pressure of construction enterprises.Among the material misstatement risks at the recognition level,the abnormal change trend of contract assets and income,the confirmation of project performance progress,the provision for impairment and other statement items related to the accuracy identification of contract assets all have higher audit risks.Accounting firms have insufficient understanding of construction projects,and auditors’ improper and inadequate design of audit procedures will increase inspection risks.At the same time,the paper puts forward the audit countermeasures from the statement level and the identification level respectively.Finally,the case of China Railway Construction is analyzed.Based on the theoretical basis and practical situation,it is found that the contract assets account for a relatively high proportion in the assets of China Railway Construction since the implementation of the the new revenue standards,which is of considerable importance with accounts receivable.In the process of recognition,measurement and presentation of contract assets,there are a lot of accounting estimates and judgments,giving the management more discretion.It is found that the contract assets have material misstatement risk and inspection risk;Auditors should focus on their internal and external environment,increase the unpredictability of audit procedures and implement more substantive audit procedures.Meanwhile,accounting firms should pay attention to the rotation of auditors,so as to achieve the purpose of controlling audit risks. |
