Auditing by certified public accountants is a profession with high risks and heavy responsibilities. In view of the particularity of debt restructuring and the complex and changeable audit environment, certified public accountants should pay attention to avoiding audit risks reasonably. Certified public accountants should evaluate whether the inherent risk of debt restructuring transactions is high; Certified public accountants shall evaluate whether the relevant internal control system is sound and effective; A certified public accountant shall reasonably determine the acceptable level of inspection risk. If the CPA thinks that the level is not satisfactory, or the probability of debt restructuring in all economic activities of customers is very small, the CPA can audit the debt restructuring business through detailed investigation.
(B) Pay attention to the impact of using fair value in debt restructuring.
Certified public accountants shall review agreements, contracts, bills and other relevant documents related to debt restructuring business and judge the correctness of accounting treatment of debt restructuring. In particular, certified public accountants should pay special attention to debt restructuring involving related party transactions, because the choice of transaction price in related party transactions has great flexibility. Therefore, certified public accountants should make a detailed investigation on the debt restructuring of related parties in order to reduce the audit risk. On the basis of obtaining sufficient and appropriate audit evidence, certified public accountants should disclose fraud in debt restructuring between related parties, effectively prevent the abuse of fair value and cause serious profit manipulation, and ensure the effective use of fair value in debt restructuring.
(c) Review the impact of debt restructuring gains and losses on financial statements
When auditing, certified public accountants should check whether the debt restructuring income confirmed by customers is accurate, whether it really and accurately increases the current profit and the earnings per share, so they should review the relevant items in the income statement; This paper investigates whether the debtor reduces assets and liabilities at the same time in debt restructuring, which affects the balance sheet, and the difference is included in the current profit and loss, which also affects the income statement. Investigate whether the creditor reduced one asset and increased another in debt restructuring, which affected the balance sheet, and whether the difference was included in the restructuring loss and affected the income statement; Review whether debt restructuring gains and debt restructuring losses are regarded as adjustment items of net profit when preparing supplementary information items of cash flow statement. Since debt restructuring is not an enterprise's business activity, the debt restructuring income of the debtor is included in the non-operating income, and the debt restructuring loss of the creditor is included in the non-operating expenditure. However, the profit and loss of debt restructuring did not affect the cash flow of current operating activities, because it did not bring cash inflows and outflows to enterprises.