Case Study On The Audit Risk Of Fenghua Advanced Technology

The rapid development of China’s economy is gratifying,but at the same time,the problems brought about by the rapid development of the economy can not be ignored,especially in the capital market,the frequent spread of illegal events such as corporate financial fraud,and the various means of fraud.Fraud projects are different.This reflects the profit-seeking nature of capital,the loopholes in China’s capital market,and the defects of third-party audit institutions.Fenghua Advanced Technology is also a member of financial fraud enterprises,enterprises and their third-party audit institutions have been punished according to law.Fenghua Advanced Technology through the use of its own funds to buy financial products,advance payment form,the formation of capital cardiopulmonary bypass,forgery of accounts receivable due difficult to recover the false appearance,to achieve the purpose of less bad debt preparation,and finally achieve the goal of false profit.Therefore,it is necessary for CPA to pay attention to and alert to similar financial fraud,in order to reduce audit risk,improve social trust in third-party audit institutions,and promote the healthy and stable development of capital market.In this paper,a case study is presented to illustrate the audit risk,analyze the causes of the risk and put forward the corresponding risk response strategies.It is mainly divided into five parts.The first part is the introduction.First of all,introduce the background and significance of the research;from the concept of audit risk,causes,prevention of three aspects of combing the relevant literature and comments;finally,introduce the research content and methods.The second part is the case description.This paper briefly introduces the accounting firm and Fenghua Advanced Technology,and describes the text of the case with the background of the financial fraud facts and fraud means of Fenghua.The third part is case analysis.Combined with relevant theories,this paper expounds the audit risk existing in Fenghua Advanced Technology Audit and analyzes the causes of audit risk.The fourth part is countermeasures and suggestions.According to the existing audit risk and the causes of risk,the corresponding countermeasures and suggestions are put forward for accounting firms and certified public accountants to better identify and deal with audit risk.The fifth part is the conclusion.Summarize and summarize the main contents of the article.The purpose of this paper is to provide reference for auditors,to provide feasible solutions for auditors to identify,evaluate and respond to risks,to improve audit quality,to improve audit efficiency and to reduce audit risks.