The Research On The Audit Risk Of Internet Enterprises

Since the beginning of the 21 st century,the Internet has become more and more popular.In 2015,Premier Li Keqiang put forward the "Internet Plus" action plan for the first time at the third session of the 12 th National People's Congress.And the number of Internet enterprises is increasing with the government's vigorous promotion of "Internet +".Up to now they are no longer simple trading activities on the Internet,but have developed into a whole trade process of the information flow,commodity flow,cash flow,and logistic transportation,which is supported by the Internet.Internet enterprises and traditional enterprises have very different business models,therefore their contents,scope and methods of audit are varied from each other,resulting in different audit risks.Auditors need to audit not only the authenticity of Internet business accounting information and transaction activity,but also the exists in audit business,under the circumstance of Internet,the audit risk of Internet enterprises is characterized by audit scope expansion,the guidance of big electronic data error,dynamic and real-time audit forensics as well as network security issues due to the change of audit scope and target,which eventually change the risk of audit.Therefore,it is of theoretical and practical significance for certified public accountants to study the characteristics,causes and preventive measures of auditing risks in Internet enterprises.This article takes the audit cases of Three Squirrels as the research object,explores the audit risk existing in its auditing activities,analyzes the causes of the audit risk and puts forward some pertinent suggestions.The specific results are as follows: In the auditing activities of Three Squirrels,the audit risk is reflected in the risks of competition in the snack food market,the overall operating risks,the risks of using network security and information management systems,internal control risks,related parties and their transaction risks,the incomplete implementation of audit procedures,and the lack of qualified personnel capable of auditing Internet companies.Then the causes of the audit risk are analyzed from audit environment,audit object,and audit subject.Among them,the environmental factors are the severe market competition,obvious industry periodicity,and insecure network transaction environment.The object factors are the relatively weak internal control of thecompany,weak software technology of the third-party platform and poor capability against virus and malicious attacks.Subject factors are the easily-hidden-and-overlooked related party transactions,incomprehensive substantive analysis procedures,as well as insufficiency of qualified auditing personnel for Internet companies and practical audit software.Suggestions are given from the above three aspects for these risks and reason analysis,which are objectively treating its industry characteristics,enhancing market competitiveness,correctly evaluating the company's maintainable operation ability,improving the security of the Internet trading environment,strengthening technology development and internal control of Internet companies,following the principle of independence for the related parties,running analysis procedures through all the auditing courses,improving the overall quality of auditors,and developing practical and efficient audit software of information system,to provide a theoretical reference for the control and prevention of audit risks in Internet companies.