Objectives
1.Authenticity:referstotherealexistenceofassetsrecordedinrelevantaccountbooksandaccountingstatements.
2.Completeness:Referstoallassettransactionsthathaveoccurredarerecordedintherelevantaccountbooksandaccountingstatements,andtherearenooff-accountassets.
3.Ownership:referstotheownershipoftheassetsrecordedintherelevantaccountbooksandaccountingstatementsthatbelongtotheenterprise,andthereisnopresentationofnon-propertyassets.
4.Valuation:Referstothecorrectvaluationoftherecordedassetswithoutoverestimatingthepriceofvariousassets.
5.Classification:Itmeansthattherecordedassetsareclassifiedcorrectly,inaccordancewiththerelevantfinancialaccountingsystemregulationsandstandards,andtheassetsareclassifiedintothecorrespondingaccountingsubjects,andthereisnoconfusionaboutassetsofdifferentstandards.
6.Deadline:referstotheassetbusinessrecordinthecorrectaccountingperiod,withoutadvanceorlateaccountingandartificialadjustmentoftheassetbalance.
7.Accountingaccuracy:Referstotheaccountingtreatmentofassetbusinessiscorrect.
8.Disclosuresufficiency:referstofullyexpressingandrevealinginformationthatshouldbedisclosedinaccordancewithregulationsintheaccountingstatements.
9.Legality:Referstotheassetbusinessoccurrenceandaccountingtreatmentrecordedintherelevantaccountbooksandaccountingstatementsincompliancewithrelevantnationallawsandregulations,aswellasthe"AccountingStandardsforBusinessEnterprises"andrelevantaccountingsystemsandfinancialsystems.
Content
1.Currentassetsaudit
Currentassetsrefertothecompany’sAssetsrealizedorconsumedinabusinesscycleoverayear,includingmonetaryfunds,short-terminvestments,accountsreceivable,notesreceivable,prepaidaccountsandinventory,etc.Themainpointsofthecurrentassetsauditareasfollows:
(1)MonetaryFunds.
Accuracyofaccounting:Reviewtheconsistencyoftheaccountstatementandtheconsistencyoftheactualaccount.Legitimacy:Examinewhethertherearecashproblemsbeyondthescopeofreceiptsandpayments,openbankaccountsindiscriminately,remittances,illegalvouchertransfers,privatedepositsofpublicfunds,off-bookpublicfunds,cashwithdrawals,depositsandpayments,bankcredits,leasesandlendsProblemssuchasaccountordepositnotbeingcredited.Reviewtheimplementationofrelevantmonetaryfundmanagementsystems,andpayattentiontotheimplementationofsystemssuchasthereviewoforiginalvouchers,monetaryfundcounting,dailycollectionanddailydeposit,andadjustmentofunresolvedaccounts.Ifnecessary,conductareviewofcapitalinventory.Whenreviewingforeigncurrencyreceiptsandpayments,attentionshouldbepaidtothecalculationandamortizationofexchangegainsandlosses,whetherthereisforeignexchangeevasion,arbitrage,andotherissuesthatviolateforeignexchangeaccountingandmanagementregulations.
(2)Short-terminvestment.
Legality:Reviewandconfirmwhetherthefundsusedforinvestmentaretemporarilyidlefunds.
Valuation:Checktoconfirmwhetherthesecuritiesarerecordedatactualcost;checktoconfirmwhetherthesaleofsecuritiesiscalculatedatthemarketday’stradingprice,theincreaseordecrease,andtheauthenticityandaccountingofthegains(losses)Completeness.
Fulldisclosure:Thereviewconfirmsthatthemarketpriceinformationofsecuritiesthatareactivelytradedinthemarkethasbeendisclosed.
(3)Receivablesandprepayments.
Keypointsofreviewofbillsreceivable:
Classification:reviewandconfirmwhetherinterest-bearingandnon-interest-bearingbillsareclassifiedandaccountedfor;thereisrecourseWhethertherightandnon-recoursebillsareclassifiedandaccountedfor;checkwhethertheduedefaultbillshavebeentransferredtoaccountsreceivable.
Ownership:tofindoutwhetherthebillswithrecoursehavebeenlistedascontingentliabilitiesoftheenterprise.
Accuracyofbillinterestaccountingandaccounting:Checkwhetherinterestincomehasbeenoffsetbyfinancialexpenses.
Fulldisclosure:Theauditedandconfirmedaccountingstatementsrevealedallliabilitiesarisingfromthebilldiscountingbusiness,andcorrectlylistedthebalanceofbillsreceivableminusthenetvalueofbillsreceivableafterdiscounting.
Thefocusofthereviewofaccountsreceivable.Authenticity:Checkandconfirmwhethertheaccountsreceivablerecordedintheaccountsexist,whethertheyarereceivableclaims,andifnecessary,verifyaccountswithlargeramountsbyletter.Valuationaccuracy:Checktoconfirmwhetherthenetvalueofaccountsreceivableisequaltothebalanceofaccountsreceivableminustheprovisionforbaddebts.Thelegalityofbaddebtprovisionaccounting:reviewandconfirmwhethertheenterprisedrawsbaddebtprovisioninaccordancewiththeprescribedproportionandwritesitoffinaccordancewithregulations.Fulldisclosure:reviewandconfirmthattheaccountingstatementscorrectlyreflectthebalanceandnetvalueofaccountsreceivable.
Keypointsofreviewofprepaidaccounts:
Authenticityandlegitimacy:CheckwhethereachprepaidpaymenthasacontractbasisandwhetherthegoodsorderedTheyareallrequiredbythecompany’sproduction;theyshouldconfirmtheadvancepaymentforimportantitemsbyletter,andinvestigatethelong-termadvancepaymentforgoods.?
(4)Inventory.
Authenticityandcompleteness:ascertaintheactualexistenceoftheinventory,confirmwhethertheinventorythathasbeenused,finishedproductsandsoldhasbeenwrittendownintimeforrawmaterials,workinprogressandfinishedproducts,andpurchasedWhethertheinventoriesofincoming,requisitionedandfinishedproductshavebeencompletelyrecordedinrawmaterials,productsinprogressandfinishedproducts.
Ownership:Examineandconfirmthattheinventoriesthathavebeensoldbutnotissued,andarenotincludedinthecompany'sinventoryaccount,andtheinventorythathasbeenconsignedandstoredonbehalfofthecompanyhasbeenincludedinthecompany'sinventoryaccount.
Pricing:Reviewtherationalityoftheinventorycostcalculationmethodandthepricingmethodandtheconsistencyofthepreviousandlaterapplications;commoditycirculationenterprisesshouldalsopayattentiontotherationalityoftheaccountingforcommoditypricereduction.
Classification:Theinventoryofindustrialenterprisesshouldbeclassifiedandcalculatedaccordingtorawmaterials,productsinprogress,finishedproducts,commissionedprocessingmaterials,packagingandlow-valueconsumables;commoditycirculationenterprisesshouldbeclassifiedaccordingtocommoditymaterials,packagingandClassificationandaccountingoflow-valueconsumables;industrialandcommercialenterprisesshouldpayattentiontotheboundarybetweenlow-valueconsumablesandfixedassets.
Deadline:Reviewandconfirmwhethertheinventoryreceivinganddispatchingoperationsthatoccurredbeforeandafterthecheckoutdateareincludedinthecorrectaccountingperiod.
Accuracyofaccounting:reviewtheconsistencyoftheinventorygeneralledgerandthesubsidiaryaccountandtheconsistencyoftheinventoryaccount;reviewtheimplementationoftheinventorycountingsystemoftheenterprise.
Legality:tofindoutwhetherthecalculationandvaluationmethodsofthecompany’sinventorycostareincompliancewiththeaccountingsystem,whetherthecompany’spurchaseandsalebusinessmeetstheprovisionsofthecontractandagreement,andwhethertheprocessingofinventoryprofitsandlosseshasbeenapproved.
Fullyreveal:Checkandconfirmtheaccountingstatementsfortheinventorycostcalculationmethod,inventoryvaluationmethodandtheconsistencyofthepreviousandlaterapplications;formortgage,slow-moving,obsolete,depositandconsignment,depositandconsignmentTheinventoryhasmadethenecessaryexplanations.
2.Long-terminvestmentaudit.
Long-terminvestmentreferstosecuritiesthatarenotreadytoberealizedatanytime,andareheldformorethanoneyear,andotherinvestmentsthataremorethanoneyearold,includingstockinvestment,bondinvestmentandotherinvestments.Themainpointsofthelong-terminvestmentauditareasfollows:
(1)StockInvestment.
Pricing:Checktoconfirmwhethertherecordedvalueofstockinvestmentisdeterminedaccordingtothedifferencebetweentheactualpaymentandthedividendsreceivable.
Accountingmethod:tofindoutwhethertheequitymethodisusedintheaccountingofthestockinvestmentthathasactualcontrolovertheinvestee;onthecontrary,whetherthecostmethodisused.Reviewthestockinvestmentincreaseanddecreasechangesandtheaccountingofthegains(losses)arecorrect.
(2)Bondinvestment.
Valuation:Checktoconfirmwhetherthevalueofthebondinvestmentiscalculatedaccordingtotheactualpayment,andwhethertheaccruedinterestisdeductediftheaccruedinterestisincluded;checkthatthebondpremiumanddiscountareusedbeforethematurityofthebondThecorrectnessofamortizationbythestraight-linemethod.
Classification:tofindoutwhethertheaccruedinterestofthebondinvestmentcontainingthedueinterestisaccountedseparately.Theaccountingaccuracyofbondinvestmentincreaseanddecreaseanditsincome(loss)accounting.
Fulldisclosure:Theauditconfirmedthattheaccountingstatementsdescribethelong-termbondinvestmentduewithinoneyearandthemarketpriceoftheendingbond.
(3)Otherinvestments.
Valuation:Whethertheinvestmentinphysicalandintangibleassetsisrecordedatthevaluedeterminedbytheassetappraisalorcontractagreement.
3.FixedAssetAudit.
Fixedassetsrefertoassetsthathaveausefullifeofmorethanoneyear,aunitvalueabovetheprescribedstandard,andmaintaintheiroriginalphysicalformduringuse,mainlyhouses,buildings,machineryandequipment,Transportationequipment,toolsandappliances,etc.Thekeypointsoffixedassetsauditareasfollows:
Authenticity:reviewandconfirmwhetherthesale,scrap,anddamageoffixedassetsaretransferredtofixedassetsliquidationandoffset;tofindoutwhetherfixedassetstransferredfromotherunitsaretransferredtolong-terminvestment;Tofindoutwhetherthefixedassetsleasedinbythebusinessincreasethefixedassetsaccountoftheenterprise.
Completeness:Reviewthesituationthatthecompletedfixedassetsarenotcarriedforwardandthefinancialleasefixedassetsarenotincludedinthefixedassetsaccount.
Ownership:Twotypesofleasedfixedassetsshouldbedistinguishedbetweenoperationandlease,anditshouldbeascertainedwhetherthelatterhasbeenincludedintheaccountingoffixedassets;fixedassetsthathavebeenmortgagedasdebtguaranteesshouldbedetermined.
Valuation:Theentryvalueoffixedassetsforpurchase,self-construction,investmenttransfer,financinglease,reconstructionandexpansion,donation,andinventoryshallbeverifiedseparately;thedepreciationcalculationandaccumulateddepreciationaccountbalanceshallbedeterminedCorrectnessinordertodeterminethecorrectnessofthenetvalueoffixedassets.
Classification:Inadditiontoreviewingthedetailedaccountingaccordingtothephysicalform,itshouldalsofindouttheused,unusedandnotneededfixedassets,operatingleasedandfinancialleasedfixedassets,depreciationandnon-provisionTheclassificationaccuracyofdepreciationoffixedassets,reconstructionandexpansionexpendituresandrepairexpenditures.
Accuracyofaccounting:reviewandconfirmtheconsistencyofthefixedassetsgeneralledger,subsidiaryledger,andphysicalassets,andsuperviseandcountfixedassetsifnecessary.
Legality:Reviewtheapprovalproceduresfortheincreaseordecreaseoffixedassets;findoutthecomplianceandlegalityofthefixedassetentryvaluedetermination,andfindoutthelegalityofthedepreciationmethodanditsapplication.
Fullyrevealing:Checkandconfirmtheaccountingstatementstomakenecessaryexplanationsondepreciationmethods,fixedassetsincreaseanddecreasechanges,assetleasemortgages,etc.
4.Auditofconstructioninprogress.
Constructioninprogressreferstofixedassetconstructionandinstallationprojectsthathavenotyetbeendeliveredforuse,includingself-operatedprojects,outsourcedprojects,andequipmentinstallationprojects.Themainpointsoftheauditofconstructioninprogressare:reviewtheactualcostoftheprojectcompletedandcarriedforward.Reviewandconfirmthelegitimacyofprojectscrappinganddamage,commissioningbusiness,projectloancostaccountingandpaymentofadjustmenttaxonfixedassetinvestmentdirection,findoutthesituationofsqueezingormisrecordingofprojectcostsandrelatedaccounts,reviewandconfirmprojectcostcarry-overandborrowingThecorrectnessofthecut-offdateforcostcapitalization.
5.Intangibleassets,deferredassetsandotherassetaudits.
(1)Intangibleassetsrefertoassetsthatarelong-termusedbyenterpriseswithoutphysicalform,includingpatentrights,non-patenttechnologies,trademarkrights,copyrights,landuserights,andgoodwill.
Themainpointsoftheauditofintangibleassetsare:thecorrectnessofthevaluationandamortizationofvariousintangibleassets.
(2)Deferredassetsrefertovariousexpensesthatcannotbefullyincludedinthecurrentyear’sprofitsandlossesbutshouldbeamortizedinsubsequentyears,includingstart-upexpenses,leasedfixedassetimprovementprojects,etc.
Themainpointsoftheauditofdeferredassetsare:theauthenticityandcompletenessofthestart-upcostaccounting,tofindoutwhetherthestart-upcostisover-calculatedandunder-calculated;thestart-upcostandtheamortizationoftheleasedfixedassetimprovementprojectexpenditureLegality.
(3)Otherassetsrefertospecialreservematerials,frozenbankdeposits,frozenmaterials,andpropertyinlitigation.
Themainpointsoftheauditofotherassetsare:checkthereasonsfortheformationofotherassetsitembyitem,verifytheoriginalvouchersandrealobjects;findoutwhetherthereisaspecialpersonresponsibleformanagementandseparateaccounting;thelegalityandaccountingofthetransferCorrectnessofprocessing.