Research On Audit Risk Of DX Accounting Firm To W Company

After 20 years of development,China's securities industry has significantly increased its capital strength and profitability.In order to support the development of the industry and encourage innovation,the state continues to increase the financial support for private,small and micro enterprises and reduce the financing threshold.In January 2015,the administrative examination and approval system for issuing corporate bonds changed.Private bond issuance only needs to be filed with the Securities Industry Association,marking the change of corporate bond issuance system from examination and approval system to registration system.The implementation of this policy makes the bond market flourish,but in order to finance,some enterprises try to whitewash the financial statements to meet the bond issuing conditions and mislead the users of the financial statements,which leads to the increasing audit risk faced by accounting firms.This paper takes DX accounting firm's audit of W company's issuance of corporate bonds as an example.Firstly,it introduces the definition,model and influencing factors of audit risk,and expounds the consequences and related theoretical basis of audit risk on certified public accountants,accounting firms,investors and audit environment.Secondly,it reviews and combs the background of the case,including the basic situation of DX accounting firm and W company,the audit procedures,audit risks of DX accounting firm to W company,and the administrative penalty decision of CSRC.Thirdly,based on the case background,this paper analyzes the causes of DX accounting firm's audit risk to W company,including CPA's failure to maintain professional skepticism,diligence and independence;CPA's failure to maintain due independence Deep understanding of customers and imperfect quality control system;reasons at the level of auditee include fraud motivation and defects in internal control;reasons for external audit environment include insufficient industry supervision and low binding force of relevant laws and regulations.Finally,according to the causes of audit risk,this paper summarizes the conclusions of case study,and puts forward the Enlightenment of case study,aiming at reducing audit risk,improving audit quality and promoting the healthy development of audit industry.