Audit Research On Financial Fraud Of X Company Under Risk Guidance

Since the first day of the birth of China's securities market,China's securities market has stood at the forefront of China's economic reform and development.The development of China's securities market has promoted the improvement of China's economic market system and the formation of resource allocation mechanisms.With the deepening of the market economy,China's securities market system has gradually matured.However,the securities market has exposed many financial fraud cases.From Boyuan Investment to Dengyun,from Jinya Technology to Wuyang Construction,these financial fraud cases have seriously hindered the healthy development of China's securities market.As a “gatekeeper”in the securities market,CPAs are responsible for maintaining the orderly operation of the securities market.Therefore,the CPA identifies the financial fraud risk of the audited entity,implements the risk response procedure,and publishes appropriate audit opinions to play an important role in the operational efficiency of the securities market and the maintenance of the operational order of the securities market.As the most scientific auditing model,the risk-oriented auditing model puts the audited entity in a multi-dimensional auditing environment,helps the CPA to comprehensively assess the risks of the audited entity,formulates a reasonable audit plan,and lays out appropriate audit opinions for CPAs.This paper selects the financial fraud incident of X company as a case,and comprehensively uses the combination of theory and case to study the audit problem in the financial fraud case of X company.Firstly,it expounds the research background and significance,and sorts out the research results of risk-oriented,financial fraud and risk-oriented auditing at home and abroad,and defines the concepts of risk-oriented auditing and financial fraud.Secondly,this paper analyzes the cases of administrative punishment imposed by the China Securities Regulatory Commission due to financial fraud in 2014-2018,and analyzes the current situation of financial fraud and the problems in the audit.Thirdly,this paper describes the background of X company's financial fraud case,simulates the CPA application risk-oriented audit process for X company,and summarizes the problems that should be discovered in the strict implementation of risk-oriented procedures.Based on this,the analysis of why the CPA is not in the actual audit process Found X company financial fraud problems,which audit procedures have problems.Finally,based on the problems faced by CPAs in the actual application ofrisk-oriented audit procedures,countermeasures are proposed.This paper believes that CPA should establish risk awareness,strictly implement audit procedures;abide by the code of practice ethics,strictly adhere to the bottom line of integrity;strengthen the review of the draft,and pay attention to the integrity of the audit evidence chain;accounting firms should develop an audit pricing system and carefully undertake audit business;The auditors continue education,improve the auditor's practice level;strengthen the information construction,set up the industry risk database;comprehensively consider the promotion conditions and construct a reasonable incentive system;this paper combines theory and practice to re-audit the audit process and help registration Accountants and audit practitioners are aware of the importance of establishing risk awareness,and more comprehensive implementation of risk assessment procedures in future audits,which ultimately has a positive effect on improving audit quality and improving audit report quality.