Research Of Auditing Risk Of Yabaite

Since the beginning of the 21st century,a large number of financial fraud cases have continuously broke out,which has shaken investors’ determination.On the other hand,CPAs and accounting firms are also faced with the risk of litigation compensation because of the failure of the audit.The CPA’s credit is seriously questioned and even the entire industry is facing a crisis of survival.Since joining the World Trade Organization(WTO)in 2001,China has become a global player.After more than 30 years of development,the strength of China’s private enterprises has gradually increased,the scale has expanded rapidly,and its contribution to China’s exports,employment,and other aspects has continued to increase.In order to pursue advanced technologies,broaden the market scope of products,and avoid trade barriers,private enterprises in China have become more interested in overseas operations.Especially in 2013,under the background of the implementation of the national "One Belt and One Road" strategy and the transformation and upgrading of the domestic industry,more and more companies have expanded their operations overseas to earn more benefits for themselves.But a complex global economic and social environment undoubtedly increased the audit risk of the CPA.Although China’s market economy is still in the stage of developing and the CPA industry has only recovered more than 30 years,the role of auditing in the development and maintenance of China’s economy has become increasingly significant.Therefore,how to reduce the risk of China’s registered accounting audit has become an urgent problem for audit theory and practice.At present,domestic and foreign scholars and experts have reached a relatively mature stage in their research on the relevant theory of audit risk.The study found that in the continuous development of the market economy,especially against the background of the frequent exchanges between multinational businesses,fraudulent use of overseas businesses has become the latest means of financial fraud,and businesses overseas have become a special concern for auditors because of their characteristics.This article takes Yabaite as an example,adopting a combination of case analysis and literature research to flexibly apply the audit risk model.Based on previous research by scholars,it analyzes and explains the audit risk of Yabaite Company.By analyzing the case of false falsified overseas transactions conducted by Yabaite Company and the two dimensions of material misstatement risk and inspection risk,we can find the audit risk existing in similar companies,providing suggestions for the design and improvement of CPA auditing procedures.In summary,the research on the audit risk of Yabaite is helpful to improve the auditor’s professional level in the auditing practice,reducing the mistakes made by the auditors in the audit of similar companies using the financial fraud of cross-border business,promoting the improvement of the auditing work in China and help maintain the order of China’s market economy.At the same time,it has certain value for improving and supplementing the related theory of audit risk.On the other hand,in the context of increasingly globalized environment,the case of Yabaite of false foreign transactions fraud will not be the last one,and it will have practical significance for analyzing the audit risk of similar companies.