Study On Contingent Financial Fraud In Auditing The Gambling Agreement

In recent years,corporate mergers and acquisitions and asset restructuring activities are in a “blowout period”.In order to effectively stimulate the benign operation of the capital market,the gambling agreement has emerged as a risk management tool.A gambling agreement is an agreement on future uncertainties when an M&A or financing agreement is reached.It is mainly used to solve the valuation gap between the M&A parties and to motivate the target enterprise management.Its essence is a form of expression,a double-edged sword with a "high risk,high return" nature.Under the pressure of the gambling agreement,the information of the two parties is asymmetrical.The gambling agreement is about to obtain more investment,avoid gambling compensation,and rush back to the previous false data to obtain gambling benefits,before,during and after the gambling agreement.The layer has strong financial fraud motives,which leads to serious or financial fraud.From the social perspective,this behavior seriously interferes with the normal business order of the market economy and affects its healthy and sustainable development.From the enterprise level,there may be financial fraud that will lead to an increase in the risk of material misstatement in audit risk,resulting in Audit failures and even corporate reputation collapsed.It is extremely urgent to study how auditors identify and reduce the risk of audit failures caused by financial fraud under the gambling agreement and optimize the audit process.This paper analyzes the failure cases of Jiadian shares under the gambling agreement,combined with the theory of fraud triangles and principal-agent theory,and analyzes the loopholes in the three aspects of independence,audit risk and audit process in the audit work under the gambling agreement.It is far from enough to rely solely on the past general audit work ideas.Combining theory with reality,it is concluded that the audit work under the gambling agreement or financial fraud needs to be independent;reasonable assessment of the risk of material misstatement of the audited entity and reduction of inspection risk Optimize the audit process,comprehensively and continuously use the risk assessment process,and give some practical auditing countermeasures from these three aspects to solve the urgent needs of auditors.At present,most of the researches on the gambling agreement in the academic world arein terms of legal status,earnings management,and regulatory requirements.This article will combine the gambling agreement with the audit work,and the gambling agreement will be scheduled before,during,and after the period.Discuss the reasons for financial fraud,analyze the impact of financial fraud on audit work,and clarify the inherent logical relationship between the gambling agreement and the audit work,extend the research scope of the gambling agreement,and expand the thinking of audit research.