Research On Financial Restatement Based On Audit Risk

In recent years,China's economy has made great progress,and people's investment consciousness has been generally improved.As a result,people from all walks of life pay more and more attention to listed companies.Financial reports,as the main way for external investors to obtain relevant business information and financial information of listed companies,have received more and more attention.In such an environment,financial restatements of listed companies in China still occur frequently,which seriously affects the healthy development of China's capital market,threatens the legitimate interests of the majority of investors,and has a huge negative impact on the audit industry.Effective against audit risk of listed companies,improve audit quality of listed companies,not only can strengthen the supervision of listed companies and reduce the occurrence of financial restatements,improve the social credibility of the auditing profession,more to ensure the economic interests of investors,promote the orderly operation and healthy development of capital market in China is of great significance.Due to poor audit quality,the financial fraud of *ST JianDian in the early stage was not disclosed in time,which led to the restatement of major financial reports in 2017.The major financial restatement of this enterprise is directly caused by two factors: one is the occurrence of financial fraud;the other is the low audit quality.Therefore,this paper mainly combines GONE theory and modern risk-oriented audit theory to analyze the case.First of all,the basic situation of *ST good power company,the company's 2013-2017 annual financial report involved in the financial fraud situation and impact were summarized.Then,since the two direct causes of the financial restatement of the enterprise are financial fraud and low audit quality,this paper will make an in-depth analysis of the case from the perspective of social audit from the two aspects of the motivation of financial fraud,audit risks reflected in the case and causes.On this basis,from the perspective of social audit,this paper puts forward specific Suggestions on improving audit quality and restraining financial restatement from the perspectives of certified public accountants,firms and the government.Specific Suggestions are as follows: the Suggestions at the level of certified public accountants mainly include in-depth understanding of customers and prudent undertaking of audit services;Comprehensively assess audit risks and make reasonable audit plans;Maintain caution and professional skepticism;Maintain adequate independence;Adopt appropriate audit procedures and improve their professional ability and comprehensive quality.The recommendations at the firm level mainly include reasonable collection of audit fees to ensure adequate audit resources;Strengthening industrial research;Improve audit quality control system and improve the comprehensive quality and professional competence of auditors.The recommendations at the government level are mainly to improve relevant laws and regulations,improve supervision and punishment.Finally,combining with case analysis,it is concluded that the listed companies in our country,especially the manufacturing enterprise in the promised performance under pressure,prone to financial fraud,certified public accountants should be in its own independence,the comprehensive assessment on the premise of the audit risk of caution,reasonable audit plan,perform appropriate audit procedures,so as to improve audit quality,the inhibition of financial report restatement".conclusion.