Audit Risk Transmission Path And Its Control Research

The implementation of the New Securities Law emphasizes the main responsibility of the intermediary agencies.Therefore,the regulatory authorities have increased the punishment for illegal and fraudulent accounting firms,and the risks of certified public accountants and securities certified accounting firms have increased significantly.However,in China's capital market,whether "Yinguangxia","Lvdadi" or recently "Kangmei" and "Zangge",the endless financial fraud cases make investors suffer huge losses,which seriously affects the sustainable development of China's capital market.We can clearly see that the outbreak of audit risk will endanger every stakeholder,so we can't simply equate the control of audit risk with the improvement of audit quality,and the control of audit risk can't just emphasize the role of CPA.However,most of the existing studies are from the perspective of auditors,and their solutions are mostly based on the ideas and methods of certified public accountants.According to the modern risk-oriented audit theory,audit risk depends on the risk of material misstatement and inspection risk.Certified public accountants can only reduce audit risk by controlling inspection risk.Material misstatement risk originates from the risk of enterprise's strategy and operation.Many factors affect the formation of material misstatement risk in the process of risk generation and transmission.Therefore,the study of the subject of risk transmission and the analysis of the transmission path of audit risk have a positive effect on the control of audit risk.Based on this point of view,this paper analyzes the influencing factors and conduction path of audit risk,and studies the control way of audit risk.This paper selects Chuying Agro-Pastoral Group(Truein Group)and animal husbandry as a case study company to sort out the situation of audit risk out of control,such as the annual audit situation and the difference of audit results,debt crisis and stock price crash.Through the development track of young eagle's agriculture and animal husbandry from prosperity to decline,this paper uses a variety of strategic analysis tools to study the generation of its strategic risk.Then,along the transmission path of risk,the paper analyzes the emergence of business risk and the formation of major misstatement risk from the two aspects of the rapid expansion strategy and diversification strategy.Then,the paper discusses the control of the risk of the inspection,and reveals that the firm is not diligent and responsible in the audit of the annual report of the enterprise.Finally,the paper concludes that strategic and operational risk is the root of audit risk,and there are many factors in the process of risk generation and transmission.Strengthening risk prevention through regulatory departments,enterprises,and public opinion can greatly reduce the risk of material misstatement.On this basis,the audit risk can be effectively controlled by strengthening the prevention and control of audit risk.Therefore,the control of audit risk is a system engineering that requires multiple participants to work together.Through the analysis of strategic risk to audit risk transmission path,on the one hand,this paper provides new thinking for the theoretical case study of audit risk transmission mechanism;on the other hand,it puts forward suggestions for systematic prevention and control of audit risk from multiple levels.