The Study On The Audit Risk Of Changing The Entrustment Of The Listed Companies

There is a serious information asymmetry in the capital market.External investors can only understand the financial status of enterprises through the public financial reports,so the reliability of financial statements is particularly important.At the same time,the listed company also hopes that the company's earnings report will show better data,so as to gain greater benefits.If driven by interests,the listed companies will often gloss over their performance or even make financial fraud,which makes the audit risk of the annual reports of listed companies greatly improved.In recent years,there are more and more listed companies changing accounting firms.Some companies even change offices frequently within one year,which has aroused widespread concern of investors in the capital market.Behind the change accounting firms may have driven the potential benefits,the audited company management may change by firms to avoid unfavorable audit opinions,or to dismiss the threat of CPA management meet the purpose of earnings management,accounting firms to survive,and to the management of collusion,these are serious impact on the financial statements the audit quality,and hinder the healthy development of audit market.This paper selects listed companies to change the entrustment research on audit risk problems,the research object is *ST Hong Gao high company annual audit the performance of accounting firms,three accounting firm change process *ST Hong Gao high in 2016 annual report disclosure,for such a change appoint behavior.This paper combined with the internal control theory,game theory and information asymmetry theory the in-depth analysis,found the motivation of the listed companies by the change behind the whitewash financial performance and intention to purchase audit opinion.Accountant is facing a greater degree of audit risk in the audit business entrusted to undertake such process,at the same time in the assessment of the risks of material misstatement and inspection of risk control is difficult,so in this article to the accounting firm in the quality of personnel,information reporting and risk control suggestions.The inspiration of this paper is that listed companies should pay attention to their behavior self-discipline.Meanwhile,regulators should pay attention to changing the entrustment of listed companies with good audit opinions.The last is the shortage and Prospect of this study.