Research On Audit Risk And Precaution Of Enterprise Mergers And Acquisition

M&A is the most important way for enterprises to implement development strategy.In 2016,Chinese enterprises' Mergers and acquisitions reached a new peak in history.But the failure of M&A transactions is common.The failure of M&A transactions will not only cause huge losses to both sides of the transaction,but also make accounting firm bearing audit failure losses.Therefore,CPA participating in M&A audit need to identify the risk of M&A,and takes appropriate risk prevention measures to reduce the audit risk of M&A.However,the research on M&A audit theory started late,and the academic research on M&A audit risk is relatively few.The object of M&A audit includes not only the financial statements audit of the acquirer,but also the future earnings forecast of the acquirer.In practice,CPA generally refers to the general financial statements audit theory to guide auditing practice.The Ninetop purchasing Anchong is a case of merger and reorganization in the first half of 2016,and because the borrower has a virtual increase in the bank deposit,the amount of its operating income is huge and the impact is bad.The M&A transaction was characterized by the CSRC as a typical transaction,and makes severe penalties for the accounting firms involved in the audit.In the case analysis,this paper takes the model of M&A audit risk as an analysis framework to analysis the audit risk including risk of major misreporting of financial statements,identifying the risk of major misstatement at the level,checking risk and risk of the incorrectly audited opinions issued by CPA,analyzing the risk of the audit in the case of merger and acquisition,and analyzing the risk prevention of the CPA.Among them,the risk of major misstatement is the possibility that the financial statements of the audited units already have significant misstatements before accepting the auditor's audit,including the risk of major misstatement at the level of financial statements and the risk of major misstatement at the level of identification.The risk of inspection is that in the case of material misstatement in the financial statements,the registered accountant has not found the risk of the material misstatement.The risk of a certified public accountant's improper audit opinion is that the CPA finds the misstatement of the financial statements,and the risk of the audit failure due to the pressure of the two parties or the temptation of the economic interests.On the basis of the above analysis,the suggestions are put forward to strengthen the precautionary measures of the audit risk of the merger and acquisition This paper hopes to provide guidance for the audit practice by applying the theory of M&A audit risk to the analysis of audit risk in the merger and acquisition of hot cases.