Risk Assessment And Response Of Financial Fraud Audit In Film And Television Industry

With China’s strong support for the cultural industry,as a key component of the cultural industry,the importance of the film and television industry is also rising,and has been rapid development.In recent years,the development of film and television industry in the process of gradually exposed many problems,for film and television industry in our country the relevant regulatory policies and tighter gradually,the whole economic situation of film and television industry in the trend of decline,most of the film and television enterprise management condition,appears ceaselessly inside industry irregularities and fraud,including cover for poor business performance through financial fraud to manipulation of profits.In film and television industry and traditional industry character,operation management,and so on there are obvious different,film and television company sales of film and television products also do not have physical form,carries on the financial accounting is very complex,auditors tend to also need to subjective assessments of the many indicators of the state-owned enterprises,facing financial fraud audit risk is different from other industry.Therefore,this paper combined with the actual case,on the basis of the film and television industry financial fraud audit risk assessment,put forward the corresponding audit response strategies.This paper takes Huanrui Film and Television as the research object,and adopts case analysis and statistical analysis and other research methods.Firstly,it elaborates the concepts related to financial fraud and audit risk,as well as fraud triangle and modern risk-oriented audit theory.Secondly,according to the current development status and the general characteristics of the film and television industry,combined with the data and relevant information of multiple listed companies in the film and television industry,the risk of financial fraud audit in the film and television industry is evaluated.Then combined with the financial fraud case of Huanrui Film and Television,it evaluates the risk of material misstatement in its financial statements and identification level.Finally,the paper puts forward relevant audit countermeasures against the financial fraud audit risk in the film and television industry.The study found that there are many factors that can influence the financial fraud audit risk of the film and television industry,including high operating risk,large financing demand of enterprises,weak internal control construction and other major misstatement risks at the financial statement level;As well as complex conditions for revenue recognition,high amount of receivables,difficult recovery,high inventory ratio,high impairment risk and other significant misstatement risk at the identification level.Factors such as complex revenue recognition and large accounts receivable that are difficult to recover in the film and television industry also make it easy for film and television enterprises to conduct financial fraud and profit manipulation with the help of these subjects.Aiming at these financial fraud audit risks,this article proposes corresponding audit response strategies.This includes emphasizing professional skepticism,cultivating auditing expertise in the film and television industry,accurately assessing the business risks of enterprises,attaching importance to the construction of internal control of enterprises,and improving the audit quality review system to deal with the risk of major misstatement at the financial statement level of the film and television industry.And by examining the authenticity and accuracy of revenue recognition,analyzing the rationality of accounts receivable and bad debt provision treatment,paying attention to the impairment recognition of inventory to deal with the risk of significant misstatement at the recognition level.