A Study Of Audit Risk Of Enterprise's Overseas Financing Conduct

On June 15,2004 the Taiwanese listed company: PROCOMP INFORMATIC LTD filed unexpectedly to the court for insolvency because of it's effortless for the European-convertible bonds (ECB) . This is the so-called PROCOMP scandal and caused other companies who issued the Euro-convertible bonds (ECB) before like the CDBANK TECHNOLOGY and CRADLE TECHNOLOGY great losses in stock prices. A serious of bad reactions started from this scandal. After the Financial Supervisor Commission punished 4 CPAs, another 12 CPAs were punished all because of the scandal, which shock the business of accounting. Recently there were many cases about the dishonor behavior of CPA happened internationally. Even though some of people were misunderstood, but the audit risk and the risk management for accountant should be taken care closely to avoid the risk against law, which is the main motive of this research.The research first begins from understanding the patterns between the audit risk and enterprise fraud responsibility according to the Taiwan and international database. Secondly the studies aim for the motives of choosing ECB as an overseas fund raising tool, which is very popular in Taiwan recently. Further the case analysis of PROCOMP will provide CPA some directions when choosing clients because the case analysis inducts some samples for evaluation from financial sheets and financial management during the period of time when PROCOMP was listed in the capital market.The results of the research shows that there were many signs lie in the financial reports even before the scandal has happened. Further, the structure and the share holding list between the board of director and managing supervisor as long as the company-managing standard will indicate the fraud behavior of the enterprise. These...