Research On The Governance And Audit Risk Of Private Listed Companies

In recent years,the financial fraud of private listed companies happens frequently.According to statistics,compared with state-owned listed companies,the financial fraud of private listed companies from 2016 to 2018 focused on false records and major omissions,and the number of penalties was nearly three times that of the former,and the total amount of penalties was nearly 11 times.It can be seen that in the case of increasing punishment by the CSRC,private listed companies are more likely to collude with their major shareholders,board of directors and senior managers to manipulate financial statements due to the lack of specific national supervision measures,which makes CPAs face very great audit risk.This paper firstly describes the research status of corporate governance and audit risk,and systematically reviews the literature on corporate governance of private listed companies and state-owned enterprises.The research on financial fraud cases in this paper is mainly based on the fraud triangle theory,mainly from the perspective of corporate governance,that is,the "opportunity" factor in the triangle theory,combined with "pressure" and "excuse" two factors,in order to explore the impact path of corporate governance characteristics on audit risk.In the case analysis part,this paper adopts a single case study method,taking private listed company Sunlight as an example,starting with the four elements of corporate governance,mainly including the ownership structure(equity attributes,equity concentration degree,operation condition of the shareholders' general meeting),the board of directors(the board size and members,board independence,the board of directors operation),the board of supervisors(size and membership of the board of supervisors,operation of the board of supervisors),senior managers and incentive and restraint mechanisms(integrity and business philosophy,performance evaluation and incentive and restriction mechanism).The study found that Sunlight equity balance degree is low,and the shareholding structure is unreasonable.Some members of the board of directors are not independent of major shareholders,independent directors are not diligent,and the role of the supervisory board is limited.The lack of integrity quality and the company's imperfect incentive mechanism have created opportunities for financial fraud,which has led to major misstatement risks in the company's financial statements,and the check corresponding risks faced by the CPA during audits.Finally,on the basis of theory and case analysis,measures to prevent audit risks are proposed.In terms of undertakingaudit business,formulating audit plans,implementing audit program,and auditing measures at specific levels,it is necessary to improve audit methods and audit quality.Of course,it is also necessary for accounting firms to play their own supervision role.