Research On Audit Risk Of TZ Accounting Firm’s ZG Company Project

With the adjustment of China’s population structure and the upgrading of consumption in the domestic market,the proportion of education consumption in China’s household consumption expenditure is increasing,and the education and training industry is rapidly rising and expanding in China.But with more capital into the industry,many hidden problems are exposed.The fierce competition in the industry,the lack of core competitiveness and the suspicion of "swiping orders" make the operation of the education and training industry complex.However,the experience accumulated by certified public accountants in the traditional audit industry in the past is not enough to be applied to the education and training industry.Therefore,this paper analyzes the audit risk of ZG company,summarizes the characteristics of the industry,and provides experience guidance for the future audit of the industry.Based on the Principal-agent Theory,Risk Oriented Model Audit Theory and Fraud Triangle Theory,this paper analyzes the problems from the perspective of accounting firms.First of all,it gives a brief introduction to the situation of the accounting firm and ZG company,and explains the background of the implementation of the audit.Secondly,it analyzes the audit risk,including the risk of material misstatement at the statement level,the risk of material misstatement at the identification level and the risk of inspection.Finally,this paper analyzes the causes of the above risks and puts forward corresponding countermeasures,and puts forward some suggestions for the accounting firms and certified public accountants,including that the accounting firms should pay attention to staff training,and join more advanced information systems and it audit means to improve the audit quality.Certified public accountants should pay attention to the effectiveness of the internal control of the auditee,strengthen the communication with the auditee,and find problems in time.In the actual implementation of audit procedures,we must strictly follow the requirements of audit standards.The innovation of this paper is that focusing on the new industry of education and training as the research object,focusing on its unique financial characteristics,combining with the audit risk theory,the paper analyzes the specific risk points of audit education and training enterprises,and summarizes the causes of audit risks and puts forward corresponding preventive measures.For the education and training industry,it helps the capital market to understand the financial characteristics and operation mode of the education and training industry in depth,so as to standardize management;for accounting firms,it helps to prevent audit risks and maintain their reputation;for certified accountants,they can also accumulate experience,strengthen risk awareness and improve audit quality.