Audit Assessment And Response Of The Going-concern Risk Of Real Estate Industry

Nowadays,the real estate industry is facing stricter financing regulatory requirements,and many real estate companies have faced liquidity risks.In 2021,the frequent occurrence of debt defaults in the real estate industry had a great impact on the company’s ability to on-going operations,and also seriously affected the interests of investors and creditors.The high dependence of the real estate industry on the external environment and the declining industry situation have led to more severe operational risks for real estate companies,which makes the capital market pay more attention to the on-going ability of enterprises.At the same time,due to the high debt accumulated by real estate enterprises for a long time,it is more likely to cause the capital chain to break in the environment of tightening financing,which will bring a high degree of uncertainty to the enterprise as on-going concern.It also directly affects the appropriateness of the audit opinion.This paper selects the typical real estate enterprise BRC Development as the research object,and tries to answer the following questions from the perspective of going concern capability audit: In the current external environment,how should certified public accountants assess the going concern risk of real estate enterprises? And how to take risk prevention measures from the perspective of certified public accountants to reduce the audit risk of continuous operation ability?Most of the existing studies take the financial risk of real estate enterprises as the starting point,and there are few studies on audit risk,especially the lack of typical case studies.In recent years,new financing regulatory requirements have emerged in the real estate industry,which have had a great impact on the financing structure and business model of enterprises.The existing literature has not been able to track the current policy requirements in a timely manner,and there is a certain lag.First of all,this paper takes the real estate industry as the background,sorts out the industry characteristic factors that affect the going-concern capability at present,and then further improves the audit risk assessment framework of on-going capability,and uses the case study method to identify the risks of the on-going capability audit of BRC Development.The revised risk assessment framework conducts a comprehensive assessment to obtain the overall risk qualitative level,and finally proposes corresponding risk prevention measures for the audit risk response stage.This paper is expected to form the on-going concern audit evaluation model of the real estate industry,based on which the qualitative evaluation results of BRC Development on-going ability are obtained,and targeted audit risk prevention measures are proposed for its specific financial risks,operational risks and other risks.This case helps the certified public accountant to identify the constituent factors of the current real estate enterprise’s on-going concern risk,and proposes the risk prevention measures of the real estate enterprise audit,which provides a reference for further standardizing the real estate enterprise audit and reducing the real estate enterprise audit risk.Based on the current policy background,the analysis of the audit risk of external financing of BRC can provide a certain degree of guidance for the audit of similar real estate enterprises in recent years in a targeted and timely manner,provide a more typical case basis,and also identify and prevent risks for the enterprise itself.