Due diligence of large-scale projects (hereinafter referred to as "optimization") will employ accountants to do the optimization of projects. With the basic data of accounting investigation, it is easier to analyze and judge projects and make investment decisions. Small-scale equity participation projects are generally in the early stage, with poor financial foundation and insufficient budget to hire accountants, so the personnel who are mainly responsible for finance in the fund team are needed to do the best. This situation is generally less people, short time, chaotic accounts and many unrecorded items ... In this case, how can we complete the best work and get enough information and data to support investment decisions? This paper will discuss the financial adjustment for the purpose of supporting investment decision without hiring an accountant; In this process, accounting vouchers are rarely randomly selected, but some materials that are easier to obtain, more statistically significant and less time-consuming are obtained to complete the work. In this article, let's talk about financial adjustment without checking vouchers.

First, the difference between financial adjustment and annual report audit

Annual report audit refers to the audit work for the purpose of issuing annual audit reports; Financial due diligence refers to the investigation conducted by investigators for specific purposes, such as investment, loan, credit rating, etc. The financial due diligence mentioned below in this article is limited to the financial due diligence for the purpose of investment decision (hereinafter referred to as "financial due diligence"). Although corporate financial reports are always checked, there are still great differences between annual report audit and financial optimization in terms of users, objectives, investigation scope, investigation methods and reports:

1, report users are different.

The users of the annual audit report are generally the shareholders, management and regulatory agencies of the enterprise; The employer is generally the audited enterprise;

The due diligence report is aimed at potential investors; The employer is usually the investor (it can also be stipulated in the contract that the investigation expenses shall be borne by the investigated enterprise, but it is the potential investor who determines the investigators.

2. Different goals

Annual report audit is mainly to verify historical financial data, that is, the financial situation on the audit base date and its previous operating results; Don't think too much about future development. Of course, the annual report audit also includes going concern and afterwards audit, but these are all to support the judgment of historical financial data;

The goal of financial adjustment is to face the future, and the review and analysis of historical data depends on what will happen in the future.

For example, for the verification of accounts receivable, the annual report audit focuses on whether accounts receivable really exist on the audit base date. How long has the account been in existence? According to the accounting system of the enterprise, how much should the bad debt reserve be withdrawn?

Financial adjustment is more concerned with the future recoverability of accounts receivable. If there are bad debts in the current accounts receivable, is it a special case or a certain probability? How many customers may have a similar situation? Will the income be the same in the future? Is there a problem with the sales policy of the enterprise, and does the customer rating and accounting period policy need to be adjusted?

3. The scope of investigation is different.

The scope of annual report audit is basically limited to the subjects of financial statements, and the work is carried out on the basis of statements;

In addition to financial statement analysis, financial optimization also needs practical research, including understanding the relationship between the target and upstream and downstream, product market prospects, customer distribution, competitors, supply chain, core competitiveness, entry barriers, capital requirements (related to financing and future income), and the background of key managers.

4. Different investigation methods.

The annual report has a fixed audit mode, and the audit procedures of various subjects are basically fixed, from the preparation of papers to reports, there are templates;

Financial optimization will pay more attention to the characteristics of the enterprise itself and adopt the most suitable investigation method, which will be more flexible.

For example, online game enterprises, their income is the sales income of game props, and the annual report audit will review the bank flow and invoices of income; Financial optimization pays more attention to the essence: are these benefits generated by real players' recharge? Or is the company under investigation "brushing" itself? This requires further analysis of the distribution of the number of players and the amount of recharge. For players with abnormally high sales, pay attention to their level, activity, payment frequency and other information. In many cases, due to the limited conditions, there may not be enough evidence to prove that the enterprises under investigation are fraudulent, but it is still very valuable to collect and sort out these signs through professional judgment and form some tendentious judgments and opinions.

5. The reports formed are different.

The report formed by the annual report audit has a unified format, audit report+statement+notes; However, financial adjustments are generally detailed statements with no fixed format. The purpose is to clarify the present situation of the enterprise and its influence on the future based on the present situation. For example, from the historical income level, judge the future growth trend and future profitability, and prepare a profit forecast table when necessary.