In the development process of accounting, people have come up with a series of standards through summary and exploration, which are called accounting standards. Accounting standards are the rules and guidelines for accountants to engage in accounting work. According to their functions, they can be divided into basic criteria and specific criteria. The Basic Code is a basic code for for-profit organizations issued by our country in 1992. Divided into general principles and general principles of accounting. The prudence principle described in this article belongs to the general principles of accounting. Briefly analyze the origin and meaning of the prudence principle and its application in accounting work, trying to make appropriate analysis of the problems that arise and propose corresponding solutions.