Research On Measures To The Audit Risk Of M&A In Listed Companies

With the continuous development of the market economy,it is common to achieve some special purposes by means of mergers and acquisitions for listed companies.However,fraud increased in the process of acquisition because of their pursuit of profit,which increases the difficulty of auditors' work and the possibility of audit failure.It is imperative to study merger and acquisition in order to reduce the risk of audit of M&A.The purpose of this paper is to reduce the inspection risk in the process of merger and acquisition audit;meanwhile improve the auditing procedure of merger and acquisition.It also provides references for accounting firms to implement the auditing business of the listed company's M&A.This paper studies on measures to the Audit Risk of M&A in Listed Companies by combining theories and case studies.The first part of this paper introduces researches of domestic and foreign literature reviews.The second part explains the relevant theory and disclosure requirements of merger and acquisition,introducing the content and characteristics of merger and acquisition audit and the related definition of audit risk.It uses statistical analysis to collate the data on merger fraud in the CSMAR violation processing database and summarizes the main risk of major misstatement of M&A.The third part introduces a case of the J Company and analyzes audit risk and performance of fraud.The fourth part studies the reason why audit risks are not be identified.According to the analysis of above reasons,the fifth part puts forward the suggestions to reduce the inspection risk from three aspects:auditing standards and disclosure requirements,certified public accountants and accounting firms.This paper analyzes the J company which aims to become a listed company by M&A,and concludes that the reason why CPA did not recognize audit risk of M&A.This paper puts forward the improvement measures for the defects in the auditing standards and the requirements of the company's merger and acquisition,and proposes that the CPA should improve the risk awareness and professional competence in the process of auditing,and improve the audit procedure and quality of the company's M&A,points out that the key concerns in the process of the company M&A audit.To a certain extent,it reduces the inspection risk of the CPA in the execution of the company's M&A business.