Research On Mitigation Audit Risk Prevention

With the globalization of world economy,the increasingly frequent economic and trade exchanges,regardless of the size of the company in all countries of the world are forced to face the huge pressure of competition in the international arena,and mergers and acquisitions as a way of rapid expansion and capital transactions,can not only meet the demand of mergers and acquisitions both sides of the scale,the synergies and to achieve mutual benefit and win-win results,so the frequency of the appear in the global market is higher and higher.In the realization of the above many high-quality returns are the result of the corresponding many dense risk points.Obtain professional advice,avoid high-risk links or risk points as far as possible,reduce or even eliminate the adversity and difficulties in mergers and acquisitions,and get a true understanding of the structure and capital of the acquired enterprises as far as possible.The above-mentioned difficulties and demands force enterprises to rely on third-party intermediaries and other professional institutions such as accounting firms.Advantages have disadvantages.In case of large-scale transfer of M&A risks or a large amount of reliance on M&A audit,how to identify,evaluate and deal with risks in the process of M&A audit becomes an urgent problem to be solved.This paper mainly adopts the method of literature review and research,case analysis and analysis to conduct in-depth research on the prevention of corporate audit risk.Firstly,I sorted out,summarized and refined the current domestic and foreign viewpoints on the contention of a hundred schools of thought related to audit risk and M&A audit risk.Secondly,I accurately defined the concepts of enterprise M&A,M&A audit and M&A audit risk.Finally,based on the four theoretical foundations of audit risk theory,enterprise M&A motivation theory,information asymmetry theory and principal-agent theory,M&A is divided into three stages according to the M&A process: M&A preparation stage,M&A implementation stage and M&A integration stage.According to the three stages of the merger and acquisition audit risk identification,assessment and response to carry on the discussion.The last part of this article is the first four parts of theory combined with A company merger,the introduction of the basic situation of both companies and merger,at the same time in the above are divided into three phases under the framework to identify the case may be in the company's strength,industry environment,value evaluation,goodwill,assets integration and laws and regulations are high risk points in the consolidated financial statements,in reference to H in dealing with the problems existed in the risk for the above points deal with and resolve measures are put forward.