Recently, the China Securities Regulatory Commission (CSRC) conducted an investigation into the misconduct in the audit work of annual reports, and found that multiple audit procedures were ineffective, especially in the on-site inspection procedures. It was found that most of the properties that were deemed to meet the conditions for handover were actually not completed and handed over, with some still under construction or even just an empty plot of land. This proves the importance of on-site inspections in audit work cannot be ignored.

On-site inspections not only allow auditors to directly observe and inspect the actual operations of the company, understand internal control systems, identify and assess potential risk factors, but also provide an opportunity for direct communication with the company's management and employees, inspect the existence and condition of fixed assets and inventory, and help uncover hidden problems or abnormalities on the books, thereby timely providing improvement recommendations.

On-site inspections are not only an irreplaceable key link in the audit process, but also an important guarantee for ensuring the quality and reliability of audit work.