Research On Audit Risk And Precaution Of Enterprise Mergers And Acquisition

On June 19,2017,The Ministry of Finance issued a notice on ordering Shu Lun Pan CPA Co.,Ltd to suspend undertaking new securities business and make rectification within a specified period.According to the notice,Shu Lun Pan CPA Co.,Ltd was twice punished by the CSRC for failing to perform its duties diligently in the process of performing the audit business,and The Ministry of Finance and the CSRC required it to carry out a two-month rectification.Rectification means that the business of accounting firms cannot be expanded,which must be faced by accounting firms.Accounting firms are losing credibility.In the face of the increase in the number of mergers and acquisitions in the market,the audit risk of accounting firms is also increasing.Therefore,the most urgent thing at present is how to identify and prevent the audit risk in mergers and acquisitions,and maintain the credibility of accounting firms in the market.In this paper,M & A audit risk as the research object,based on extensive access to relevant literature at home and abroad,first of all through the integration of causes,identification and control of M & A audit risks integration theory to sort out and summarize the relevant research status;and then construct the model of M & A audit risk and analyze the influencing factors.Then,we choose the case of kanghua merged busen shares and analyze the M & A audit risks in it,which including risk of major misreporting of financial statements,identifying the risk of major misstatement at the level,checking risk and the risk control defects of accounting firms in combination with the agricultural characteristics and fraud modes of enterprises.On the basis of the above analysis,some Suggestions are put forward for relevant stakeholders on strengthening the prevention of M & A audit risks.The purpose of this paper is to give favorable guidance to the CPA’s M&A auditing standards,and then guide the CPA to accurately perform the audit work on the M&A party,reduce the risks arising in the work,improve the audit execution quality,and prevent the M&A audit failure.The innovation of this paper lies in the framework of the audit risk model of M&A,which is used to analyze case enterprises.Based on modern risk-oriented audit theory,in order to analyze the risk points brought by the agricultural characteristics of the case enterprise,the author joins the audit risk control defect risk of accounting firm in the perspective of accounting firm’s own management,but not only in the perspective of enterprise.it is pointed out that the firm should pay special attention to the special risk points in the special industry in the merger and acquisition audit.