On the use of analytical review in audit ? Abstract Analytical review of audit technology is a basic method used in the audit process is very important, and it is very broad, in some cases, there is still the advantages and disadvantages, due to the presence of these advantages and disadvantages, leading certified public accountant and did not full and reasonable use, and regarded it as Mangrenmoxiang in this paper, the audit cited many examples to explain the failure of the audit process in the future should pay attention to the use of analytical review, making it a unique advantage of audit tools and audit sword, but also pointed out that there are as review some limitations, can not rely too much on analytical review, if the blind pursuit of audit analytical review will also end in failure. Key words: analytical review; audit; use; limitations ? ? On the use of analytical review in audit ? Analytical review of audit technology is a basic way, it is the auditor of the audited unit by comparing a variety of financial data and other economic data, to obtain audit evidence, audit findings made by the method. Analytical review of the use of very broad, almost applicable to all types of audit projects throughout the audit process. In the particular case, analytical review of the results can be used as audit evidence, even in the implementation of the specific purpose of the audit or review of small balance accounts, can be made only through analytical review audit findings. Conducting analytical review, the CPA has increased professional skepticism, doubt fraud is likely to be found in order to avoid &quot;seeing the tree but not the forest&quot;, can greatly reduce the audit to obtain audit evidence of the workload, thereby saving manpower time, reduce costs, analytical review can also use the reliability of financial statements evaluation, the better to avoid mistakes and ensure the quality of audit work. But there is such a complete audit of means, often there are some cases in the real audit of the audit ended in failure, such as &quot;Dawn shares&quot; case, as auditors during the audit did not make full use of analytical review but have not found a variety of business means of false, inflated income 5.82 million yuan and profit of 630,000 yuan in fact, to the huge losses to investors. First, the use of analytical review in audit situations Analytical review refers to &quot;certified public accountant of a major percentage of the audited units or trends, including the investigation of these abnormal changes in rates or trends and with the expected amount and related information changes.&quot; Easy to see through the data is the essence of analytical review relationship or contact between the modeling, confirmed that significant differences, and to make a significant difference in the causes of test substance or explanation. Significant differences, in particular, is a major non-expected differences in both the Audited significant accounting issue, but also important areas of the audit. For example: Forest Travel Co., Ltd. has been over the past two years, tourism revenues of 15% to 20%, but increased to 25% in 2006, the auditors should be noted that this index changes, a detailed analysis of this change is due to the rapid development of tourism, the economic environment changes (such as population growth and rising costs of the tourist industry accounted for the proportion of tourism revenues decline) caused by the presence or misstatement of financial statements due to find out the real cause of increase tourism revenue. 1, the audit planning stage That in the audit planning stage, to help auditors to determine the nature of other audit procedures, time and scope, focus audit areas typically include subjective judgments of management accounting issues (such as depreciation of fixed assets valuation method of choice), abnormal changes in the accounting statement items and so on. Plan the audit work, the Shi Yong Analytical procedures The main purpose of the audit staff in order to use the operation to be audited better understanding and recognition of Guanxi among data and unexpected anomaly of fluctuations, Yipian identify potential Cuobaofengxian there areas. Pointed out that the high-risk areas lie in order to develop a targeted audit program to audit more efficient and effective. Weak internal control systems such as accounting statement items, major impact on project financial statements, accounting statements, which occurs prior to closing large or unusual financial services (such as at the end of a large number of sales), as well as business and other related persons. 2, the implementation phase of the audit Audit the implementation phase, directly as analytical review procedures to collect and account balances and transactions with the various types of evidence for the specific purpose identified. For example, the audit year, inventory turnover and inventory turnover rate of pre-defined basic line may be to judge the cost of ending inventory and cost of goods sold from the current whole, is reasonable. If you use the details of tests, to obtain the same conclusion to spend a lot of time. It is noteworthy that in the implementation stage, the analytical review to provide evidence of the majority are only corroborative evidence, its probative force is relatively weak, must be confirmed with other evidence combination specifically identified on a certain matter. But this does not affect the CPA use of this procedure, since the use of analytical review can bring savings in manpower and time. Particularly on some important projects, the implementation of analytical review procedures of the project can achieve the specific audit objective, very economical. 3, the audit report stage End of the audit, the use of analytical review can be major issues or financial problems on the final comprehensive analysis of the relationship if the information is unreasonable to consider the additional audit procedures or revising the audit report. If Audited balance is higher than the same size with the industry average of other companies, but profit margins are lower than the average level of assets, it indicates a higher financial risk of the enterprise, companies will continue to adversely affect the viability of this time comments on the audit report should make a careful choice of the type. Stage in the audit report, analytical review of all financial statements and reports of the planning phase of the audit period must be used, being used to examine the overall reasonableness of the accounting statements for final review. It is noteworthy that in itself is not evidence of analytical review, but that the direction of further investigation, but also the implementation of other details of the test results of the analytical review to be confirmed. Second, the current use of analytical review of specific problems and causes Although the analytical review of the audit process is essential audit tools, the same is also very widely used, but in case of occurrence of the audit point of view, the concrete application of analytical review in more or less problematic, specifically manifested in : (A) the audit process is simply not the use of analytical review Although defined in the audit planning stage to the use of analytical review and reporting stage, but actually part of the auditors for some reason, often going through the motions of the audit process, hastily, there is no independent auditing standards in accordance with the requirements of the use of of review procedures to determine the importance of the audited accounting issues and key audit areas, or no use of analytical review by the trial on the overall reasonableness of the accounting statements for final review. Certified Public Accountant in the audit of financial statements in the application of analytical review if you do not attach importance to this process, is equivalent to Mangrenmoxiang, one-sided and even easier to come to the wrong audit findings, lead to greater audit risk. In 1996, King China has 566 million yuan source fictitious profits, inflated capital fund 657 million yuan. A result, the company&#39;s fixed assets, construction in progress, intangible assets have increased significantly to profits in 1995 to 670,000 yuan by the &quot;surge&quot; to 5.7093 billion in 1996, return on equity rate of 0.034 yuan in 1995 / share to 21.51 yuan in 1996 / share, the stock price soared from the 3 yuan to 30 yuan. The face of these artificial profits adjustments take Joan annual accounting statements of public sources in 1996 the Chinese accounting firm&#39;s audit practice, issued a grave containing the contents of the audit report false. Source of audit cases in Hainan China, if the auditor can make full use of analytical review in the planning stage, the profit from the trend analysis report, it is easy to see the source of profits by the King China in 1995 to 670,000 yuan, &quot;soared&quot; to 1996 5.7093 billion years, return on equity rate of 0.034 yuan in 1995 / 1996 shares to 21.51 yuan / share the risk of abnormal growth point; profit from the structural analysis of the statements, we can find the source of profits Hainan China main income in the total amount of 34 times, Joan people do not source of profit growth is the main business income. Source of audit cases in Hainan China, even if the auditor is not concerned in the development of plans to change the risk of abnormal profits in the implementation phase of the audit report did not find evidence of false profits; but if the report stage of the audit, review of personnel able to use of the overall review of the reasonableness of accounting statements to make a final review, is bound to find abnormal changes in the profit report, these anomalies will guide the direction of the field audit staff review the implementation of additional audit procedures to confirm worries added to obtain sufficient, appropriate audit evidence. (B) audit the use of analytical review is not appropriate Currently, in accordance with the &quot;Guidelines&quot; requirements, the application of analytical review in audit approach has attracted the concern of the audit staff, as auditors of the analytical review of the understanding and application of skills in different degrees of bad, only on the account book of the analysis, not from the actual start. In general the degree of attention and use is not high enough, analytical review of the role of the audit process has not been fully realized. Therefore it is not the auditor when not appropriate in the use of analytical review is the over-reliance on analytical review. 1, the use of inappropriate analytical review Certified Public Accountant in the audit of a subsidiary of the entertainment room five-star hotel, located in prime locations in the entertainment room, business is quite prosperous. Carried out in its annual audit, found no other abnormalities, the basis of good accounting, accounts management standards, accounts neatly bound form, but its profit and loss account reflects the annual loss in more than 20 million. Certified Public Accountants and in accordance with the loss of more than 20 million for the balance of the financial index analysis and investigation of their credentials, ask the hotel under the certificate of accounting personnel, and accounting personnel made their interpretation. CPA blindly trust in its accounting personnel, the discovery of its revenue, and costs when there are problems and no additional mass of detailed analysis, issued an audit report, after the lead audit failure. CPA license restricted to specific accounts and oral evidence, to expect this analysis to discover significant Cuobi, is often duplication of efforts. I understand that according to the basic situation, the initial determination of its very possible underreporting of income, inflated costs, tax evasion and tax situation. As long as the CPA was found to reflect the profit and loss account over 20 million annual loss for its further analytical review, append its revenue, and costs the details of the test to be confirmed, did not listen to the interpretation of accounting personnel, it is not difficult to find the inflated cost of the fact that nearly 30 million. 2, over-reliance on analytical review In early 1999, a public accounting firm to conduct an audit of the ABC, and issued an unqualified audit report. The end of 2000, China Securities Regulatory Commission made a profit on the ABC sample. The reports of serious distortion and inflated assets 8,996 yuan, 19.56 million yuan inflated debt, more seriously, the problem of the enterprises in the less than frequent mention fewer illegal transfer costs, costs losses are to narrow the scope of consolidation loaded with more than 90% of the amount of false accounting by series of false accounting inflated out. Auditors in the planning and reporting phase, carried out on the statements of profit ratio analysis, the main business income reached 409.43 million yuan, 35.41 million yuan net profit, earnings per share of 0.1846 yuan, net assets yield 6.31%. Which also made the purchase and sale of materials and products contracts, the import and export invoices, customs documents, as well as bank deposits and transactions of the External Confirmation and other evidence of several major projects, and found no abnormality. After sampling the CSRC said the main reason is because the management of ABC company began fabricating false information and relevant evidence. It can be seen over-reliance on analytical review audit staff, will make it one of the causes of audit failure. Of course, these few cases, the certified public accountant in the practice of analytical review was also done, but for analytical review found that the abnormal or unexpected issues, additional details of the test is not appropriate, or to obtain audit evidence is not correct, the same will lead to audit failure. Therefore, the implementation of analytical review procedures CPA must pay attention to the results of analytical review procedures should be made by other evidence to support or explanation, otherwise, the implementation of analytical review procedures will not make any sense. Analytical review is a registered accountant, a sword, is also an important means of auditing, as long as the skilled application of this sword and this means no certified public accountant with extensive knowledge, rich experience and high sensitive practice. But because of this, the use of certified public accountants often do not attach importance to analytical review and as Mangrenmoxiang, arbitrarily audit findings. Third, strengthen the use of analytical review in audit &quot;Independent Audit Guideline No. 11 - analytical review&quot; clearly defined during the accounting statements of the audit, analytical review procedures should be used. The main problem now is to promote the technology firm hand to strengthen the promotion and application against Mangrenmoxiang, identify important accounting issues and key audit areas, decreasing auditing risk and improve audit quality, I think from the following aspects: 1, to raise awareness, emphasis on the learning and application of analytical review techniques Li Jinhua, Auditor-General pointed out that &quot;Today&#39;s audit is no longer a simple audit, the audit environment is changing, the object is changing, audit techniques and methods are changing, changing society, the core strategy for the future of the audit should be Let our society safer, make our government more efficient. &quot;audited the new things in the audit of the quality and impact of various factors, human factors are the first. Therefore, enhancing the auditors to learn, master, and apply advanced knowledge of audit techniques and methods is an effective application of advanced technology and methods of audit priority. 2, strictly abide by the independent auditing standards, standard audit practices, improve the ability of the auditor&#39;s professional judgments In the audit process, the analytical review of the application is no longer an option. Knowledge in solving problems, quality issues, we must strengthen the auditor&#39;s audit quality awareness, awareness of risk awareness and norms, promote the audit infrastructure, standardized audit institutions and auditors in auditing. 3, a correct view of the limitations of analytical review, however, depend heavily on analytical review Focus to help grasp the audit analytical review, save audit time and improve audit efficiency, can be used in all stages of the audit process, but also has its limitations, one is internal control failure, based on the data itself analytical review false, resulting in Analysis of the results is false; the second is the lower accuracy of the data, analytical review conclusion may be drawn from failure, such as the impairment of assets, the cost of withholding the number, the data with a very subjective sex, the lower the accuracy of analysis may be inaccurate, and therefore the audit process can not be too much reliance on analytical review concluded. Of course, there are certain limitations of analytical review. Such as: use the industry average inventory turnover rate of inventory turnover to determine Audited reasonable. But we must consider the information industry to meet the specific conditions and Audited level, when the unit inventory valuation methods and where the industry is not the typical method used in the same time, industry data comparability and usefulness will be limited, analytical review of the effect is be affected. Certified Public Accountant in China faster and more simple and convenient in order to make the audit or Audited Cuizhao do audit, due to time and cost constraints, there was simply not enough hard thinking to review the relevant information, and some simply do not go and collect evidence because in the beginning of each year, firms have been relatively busy, and think about what kind of issue as long as the previous year&#39;s report, the next year and also about, of course, the same audit opinion issued. Driven by interests, in order to obtain personal benefit at the expense of firms at the expense of excessively accommodating customers, then the audit failure is not accidental. In short, the main emphasis of the analytical review and review of audit failure in heavy multi-firm case is not a report based on actual requirements, analytical review of the guidelines so perfect, so of course everyone should have a complete accounting firm The analytical review system, in determining the system, to be implemented step by step up. References  Gao to. Auditing [M]. Beijing: Science Press, 1994  Ministry of Finance, the Office of Certified Public Accountants Examination Board. Audit [I]. Beijing: China Financial and Economic Press, 1994  Zhao Baoqing. Internal audit quality control of [M]. Beijing: Audit and Economy No. 1 2001  Hui Zhang. Interpretability new definition of internal auditing [M]. Beijing: China Internal Audit No. 5, 2003  Long Xiao Gang. On the application of analytical review in audit [M]. Beijing: Social Sciences Edition 1999  Joe Peng, Feng Yixiu, Xie Zhihua. China Audit [M]. Beijing: 2005 Comprehensive Edition 4  Tong Zhang. 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