Audit Case Study of Revenue Projects at China Merchators Transportation Technology
DOI:
https://doi.org/10.62051/99xs3c92Keywords:
Financial Statement Audit; Revenue Project Audit; Audit Efficiency.Abstract
With the increasing reliance of the whole society on audit reports in recent years and the growing attention paid to the audit industry, accounting firms should make new progress in the new era. Since the implementation of the new revenue recognition standards for all listed companies in China from January 1st, 2020, there have been many deficiencies in revenue auditing. In 2022, the Chinese Institute of Certified Public Accountants (CICPA) issued the ‘Notice on the Audit of Annual Reports of Listed Companies for 2022,’in which the first item in the listed high-risk audit areas was revenue audit. Based on this background, this paper starts from the audit case of revenue projects of China Merchants Transportation Technology (Chongqing) Co., Ltd. (hereinafter referred to as: CMTT) by Shine Wing Certified Public Accountants. By analyzing the revenue audit process and the deficiencies occurring in the revenue audit of the accounting firm, it puts forward suggestions on how the accounting firm can better promote the audit work, in order to reduce audit risk, improve audit efficiency, and increase the reliability of the audit report. This paper describes the revenue audit process of CMTT and analyzes the shortcomings of the accounting firm in the audit work from various work behaviors. Secondly, guided by the goal of improving audit efficiency, it proposes suggestions for optimizing audit work, perfecting audit procedures, and improving audit quality. This paper discusses the practical application of the revenue audit of CMTT by the accounting firm, providing a reference for similar enterprises.
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