Research On Accounting Errors Of Listed Companies And Audit Risk

Disclosure of listed company’s financial report not only reflects the company’sfinancial position and operating results, but also the main basis for investors to makeinvestment decisions. The occurrence of accounting errors verifies the misstatement offinancial reporting. Whether deliberately to objective or subjective, The occurrence ofaccounting errors are reflected the low quality of financial information disclosure. CPA asexternal auditors in improve the timeliness of accounting imformation discloure in ourcountry and sufficiency has played a positive role, in the aspect of perfecting andimproving the efficiency of corporate governance also has played a positive effect. Whenbeing audited financial reporting system is not trusted, suggests that the company’s internalcontrol effectiveness are no longer reliable, the potential risks of CPA audit risk alsoincreases accordingly.In this paper first summarizes the domestic and foreign related research status ofaccounting errors; then separately for accounting errors and audit risk theory expounded;then the relationship between audit risk and accounting errors were analyzed, accountingerrors reflect the listed company internal control system is not perfect, the management ofearnings management is serious, the financial reporting less trust, have a higher risk ofmaterial misstatement of financial reports, CPA audit risk is higher.Based on all the listed companies from2010to2012as sample, study of accountingerrors correction announcement of the company, to test the listed company’s accountingerror and the correlation between audit risk. First of all, to quantify the audit risk, which isbeing punished and abnormal audit fees as substituion variables of audit risk, SPSSstatistical regression. Results show that the accounting errors related to the audit risk is real,and relating to the operating profit and non-recurring profit and loss accounting errors wascorrelated with the audit risk, Involved in related party transactions accounting errors andcorrelation between audit risk is not obvious. Finally, this article from the perpective of thecertified public accountants proposed focus on accounting errors correction report, auditclues are clarified through accounting errors to reduce audit risk suggestion, namely to strengthen accounting errors correction report sensitive project audit, such as operatingprofit, relatec party transactions and non-recurring profit and loss accounting errors, thusreduce CPA audit risk.