| In recent years,financial misstatement cases caused by financial fraud have occurred frequently,which not only disturbs the order of China's securities market,but also infringes on the interests of investors and has a negative impact on the healthy,stable and sustainable development of China's economy.In order to effectively identify the major misstatement behaviors of enterprises,China Institute of Certified Public Accountants introduced a modern risk-oriented auditing concept in 2006 and issued a series of specific auditing standards.Among them,Auditing Standard No.1211 “Understanding the audited entity and its environment and assessing the risk of material misstatement” emphasizes the role and importance of identifying the risk of material misstatement in the audit work,and lists a series of matters that need to be alert.The guidelines promulgated in 2006 have determined the auditing ideas based on the risk of material misstatement as the starting point and the core.If the auditors can accurately identify the risk of material misstatement in the enterprise,the financial fraud will lead to a significant r eduction in the number of major misstatements.At present,the research on the combination of risk-oriented audit theory and practice is still insufficient.Under the guidance of Guideline No.1211,this paper applies the concept of risk-oriented audit to the process of identifying the risk of material misstatement by means of case analysis.It is hoped that the application of risk-oriented auditing in practice will be deepened,and guidance will be provided for auditors,regulators and investors to identify the risks of material misstatement of corporate financial reports.This article selects Yunshu Biological Company as a case.The company was investigated by the Securities and Futures Commission in January 2018 for alleged information disclosure violations.After analyzing the company's relevant information,it can be found that there are many signs of major misstatement risks in the company,such as the company's financial self-inspection corrections in 2017,the company's shareholder shares and company account freeze,executives and independent directors have resigned,and the company has a large number of No external guarantees were disclosed.Yunshu Biological Company has many problems,but no scholars have studied the company.According to the idea of risk-oriented auditing theory,this paper identifies the risk of material misstatement of Yunshu Biological Company financial report from the macro level,industry level,enterprise level and financial statements,and finds that Yunshu Biological Company has abnormal phenomena and material misstatement risk.For example,Yunshu Biological Company faces many pressures and risks from the industry level;the gross profit margin of the company's main products is much higher than that of its peers,and this data is greatly reduced after the company's financial self-checking corrections;the control failed;the company's inventory data in 2015 was abnormal.According to the major misstatement risk of Yunshu Biological Company,Ltd.identified in Chapter 3,this paper presents a response strategy for auditors in Chapter 4.According to the business cycle,the company's business is divided.This paper selects three business cycles related to Yunshu Biological Company's risk: production and inventory cycle,sales prepayment cycle,investment and financing cycle,respectively,which lists the auditors identifying major risks.After further audit procedures,specific steps for control testing and substantive procedures are proposed for each business cycle to provide a reference for auditors.This paper applies modern risk-oriented audit to case study.According to the guidance of Guideline 1211,the process of identifying the major misstatement risk of the case company is elaborated,which makes up for the blank of the research of Yunshu Biological Company and enriches the research results of the combination of modern risk-oriented audit theory and practice. |
PDF Full Text Request