Identification,Assessment And Countermeasures Of The Risk Of Material Misstatement In Webcasting Enterprises

The webcast industry was born from the Internet economy,and had a vast market in just a few years.Despite insufficient growth momentum after 2018,because of Covid-19,the industry has regained its vitality.Technological innovation has also led to continuous changes in the form of live broadcast.The “live broadcast +” model has driven others Industry development.Many webcast companies have expanded financing and sought to go public in order to better develop,which has increased the auditing needs of the industry.As an emerging Internet industry,the live webcast industry has many new and industry-specific audit risks in its audit process that need to be identified and dealt with by certified public accountants.As far as existing research is concerned,most concerned about the common audit risks of Internet companies,other major researches on the profit model and regulatory issues of webcasting companies.To supplement the deficiencies of existing research,this article focuses on the audit risk of webcast companies.For better research the relevant theories and the profit model of the web live broadcast platform are first introduced,and then summarizes the four characteristics of webcasting companies,and proceed from this to further analyze the necessity of such enterprise audits.In the identification of risk of material misstatement for webcast companies,take Huya Live Broadcasting Company,the leading live broadcast platform in the industry,as an example.First understand Huya live broadcast company and the industry environment.After a preliminary understanding,it was concluded that single profit model,the impact of upstream industries,defects in internal control and copyright issues make the financial statement level have a high risk of material misstatement.At the recognition level,revenue recognition and cost and expense recognition are high risk projects.Due to the high risk of fraud in webcasting companies,fraud risk factors have been identified from three aspects:opportunity,pressure and excuses.After identifying these different levels of risks,in order to better deal with the risks,at the overall level,measures mainly include:assign experienced personnel to the project team,understand the business process of the company before assessing risks and more funds should be used to develop audit software.At the specific level of identification,further audit procedures should include control test based on IT technology,substantive procedures such as inspection procedures,analysis procedures,and correspondence procedures.At last,to better help the healthy development of the webcast industry,especially to help CPAs to better perform audit work,considered some suggestions for industry audit risk prevention.