What role did audit play in Evergrande? How to reduce the professional risk of CPA audit

In the event of Evergrande, audit played the role of supervisor, supervising and evaluating the financial status and operating performance of Evergrande Group to ensure the accuracy and compliance of its financial report.

Certified public accountants can reduce audit professional risks in the following ways:

Do your duty. Certified public accountants should abide by the law, fulfill their duties, strictly abide by the CPA Law, the Securities Law and other relevant laws and regulations, improve their professional level, and reduce the risk of practicing auditing.

Establish a risk control system. Strictly check the practice process, signature and review of certified public accountants, improve the quality of audit reports and prevent defective products.

Turn into a non-practicing certified public accountant. Non-practicing certified public accountants can engage in consulting, lecturers, corporate executives and other affairs, which is a risk avoidance strategy.

How to reduce audit risk for certified public accountants.

1. Strengthen theoretical knowledge learning

Conditional accounting firms can arrange full-time study in stages in a planned way. But more importantly, the majority of certified public accountants should focus on planned self-study, attach importance to the theoretical knowledge and self-study exams organized by the Institute of Certified Public Accountants and the training departments of accounting firms, and actively accept counseling and training. This has better effect and stronger applicability.

2. Improve the comprehensive quality of certified public accountants.

Firms should pay attention to two aspects: on the one hand, when recruiting professionals, they should strictly control the quality, and those who do not have the conditions cannot be hired. On the other hand, we should pay attention to the planned follow-up education of existing certified public accountants.

In terms of working methods, certified public accountants should embody the principle of paying equal attention to service and supervision, and paying equal attention to certification and promotion. Adhere to the principle of equal treatment and equality. Whether a certified public accountant can gain the trust of the public, be objective and fair, and seek truth from facts depends to a great extent on whether a certified public accountant can conscientiously enforce the law in his practice, serve customers enthusiastically and responsibly, and realistically supervise customers' violations.

The quality of CPA's practice is credibility. Reputation is not only the social image of certified public accountants and accounting firms, but also the soul and lifeline of their existence. Therefore, certified public accountants must firmly establish the value concept of "honesty is above everything else". To establish credibility, we must have good professional ethics, accept the supervision of the masses with an open mind, correctly treat the business competition between peers, focus on the overall situation and respect each other.

First of all, we should strengthen professional ethics education, constantly strengthen the legal awareness, responsibility awareness and risk awareness of relevant personnel, and have strong professional literacy. Only increasing the economic benefits of the firm and ignoring the social benefits will bring huge audit risks to the firm.

3. Improve business technical capabilities

Theoretical knowledge is the foundation, and professional ability depends on practice. The professional ability of certified public accountants is mainly manifested in their comprehensive practical ability, which mainly includes: basic practical ability, ability to apply theoretical knowledge, ability to acquire knowledge independently and develop themselves, ability to analyze and solve problems, ability to express words, and ability to deal with foreign affairs and interpersonal relationships. Accounting firms should comprehensively improve the professional and technical ability of certified public accountants, so that they can be used freely in practical business.

4. Improve the ability to see through the "trap"

Certified public accountants can be trained in the skills of identifying "false accounts", so that they can understand how the accountants of the audited units usually make false accounts. In this way, knowing how these false accounts are made, we can find and identify false accounts and easily crack the traps set by the audited units in financial accounts. The ability of certified public accountants to detect false accounts has been improved, which can better avoid issuing audit reports that violate the objective reality without knowing it, thus reducing the audit risk of the firm.