The Audit Risk Research Of Neeq Listed Companies

Since Neeq set up in 2006,the number of Neeq listed companies has more than eight thousand.The establishment of Neeq benefits our small and medium sized micro-enterprises characterized by innovation,entrepreneurship and potenial growth a lot.The The establishment also facilitates structural reform of the supply front to increase the quality and efficiency of supply system and provide a growth impetus for sustainable economic development.The operating,management,technological factors and policy support of micro-enterprises contents much uncertainty and instability.Those factors makes the audit risk much more serious for CPAs after public accounting firms decide to provide audit services.The material misstatement risk of Neeq listed companies is relatively more serious due to the lower standard of listing on Neeq,the poorer quality of accounting information,a weak control environment and inadequate control activities.Lack of competency,experience and audit resources also has a negative effect on audit quality.Therefore,measures should be taken to enhance the audit of Neeq listed companies and improve the quality of accounting information as well as control environment.Then article expounded the higher risks of material misstatement risk of Neeq companies from the view of external environment risk,system design risk,internal control risk,customer business risk and accounting treatment risk.The article also expounded that CPA confronts a higher risks of detection risk due to lack of competency,experience and resources.In the end of this article,case analysis was adopted to validate the theory and provide suggestions.