Explorations Of Precautions Against Auditing Risk In Enterprise International Mergers And Acquisitions

Mergers and acquisitions as a more and more active in today’s capital market property right trading activities,the wave of mergers and acquisitions become more and more China’s enterprises blustery,but the real m&a success and achieve the goal of m&a project actually not much,investigate its reason,mainly because of mergers and acquisitions as a high-risk activities,in which the risk is,at the same time in the process of mergers and acquisitions are often faced with financial fraud and fraud,and so on and so forth.Audit and enterprise international m&a is a complicated system engineering,it involves politics,economy,law,finance,auditing,management,and other system modules,these modules are hidden risk,and thus the overall difficulty is very big,this also poses a merger audit and intuition to higher risk and the audit responsibility of significant.After m&a audit work closely integrated with the enterprise mergers and acquisitions,although can effectively reduce audit risk to merge,but because of the workload increases,the corresponding risk points is increased,how to effectively prevent because of the risk point of new risks,has become a very important problem.The fact that the enterprises in the merger and acquisition activity invited experienced third-party institutions to participate in,to the enterprise merger and acquisition of real-time monitoring and evaluation of the audit process,can effectively reduce the uncertainty happening in acquisition,audit risk is also quite effective to reduce m&a.Improve the quality of financial information and to increase the credibility of financial statements has been the focus of the certified public accountants,mergers and acquisitions of various uncertain factors will inevitably bring certified public accountants audit services of mergers and acquisitions greater audit risks,certified public accountants have to alert.In the financial statements audit of general rarely or there will be no problem,may need to pay great attention to in the enterprise m&a audit.In mergers and acquisitions audit,certified public accountants must properly handle the enterprise information asymmetry problem,in-depth investigation and study the cause of information asymmetry happens,and proposes the corresponding solution,serious audit summary and m&a business related experience,to prevent for future audit work to offer help.At first,this paper aimed at the prevention of audit risks should be discussed in the mergers and acquisitions to do the relevant research background,explains the practical significance of the research as well as the existing research results about the merger andacquisition of audit risk,and then introduces the related concepts and theory of enterprise merger and acquisition of audit risk and its measurement and evaluation methods,according to the merger of three basic stages at the same time,the stage of preparation,implementation,integration through the existence of audit risk and precaution has carried on the detailed elaboration,and then to shuanghui group acquisitions Smithfield as case analysis,from the perspective of general audit risk of mergers and acquisitions,discusses enterprise international mergers and acquisitions in the practical case of audit risk prevention measures and its effect assessment,and finally put forward the enterprise international mergers and acquisitions of audit risk prevention measures and experience summary and induction.In this paper,with the modern risk oriented merger audit risk model combined with the specific process of mergers and acquisitions,for the Smithfield shuanghui international m&a case has carried on the measurement and evaluation of audit risk,after considering that the acquisition of audit risk is within an acceptable range.Finally,the paper combined with the actual situation of the case,summarizes some experience of enlightenment,hopes for the future of auditors in the audit work to carry out the relevant international m&a provide effective experience.Transnational merger and acquisition is a contains a high risk of enterprise economic activities,the auditor firstly suggested Lord and enterprise in the choice of the target enterprise in accordance with their own development strategy,to audit scheme of mergers and acquisitions for merger and acquisition environment design science,and to fully before m&a,scientific research and the strength of the right to carry out mergers and acquisitions subject evaluation,secondly in mergers and acquisitions audit to carry on the scientific assessment of enterprise value,at the same time to select the correct accounting treatment method,the final audit in enterprise m&a integration stage of m&a auditors to assist enterprises do a good job arrangement,the personnel of the enterprise and provide enterprises with effective detailed financial data and relevant financial planning advice,provide enterprises with the integration of related business advice,help enterprise integration enterprise culture.The Smithfield shuanghui group m&a cases merger audit risk prevention measures through analysis is practical and effective,it can experience for the future audit certified public accountants to carry out the enterprise m&a has the certain reference and guidance.