Research On Audit Risk Of Listed Companies In Environmental Protection Industry

From the perspective of China’s economic development system at the present stage,the environmental protection industry plays an important role in the components of the national economic system and is an indispensable part of the country’s long-term development strategy.During the 13th Five Year Plan period,the state gradually increased its support for the environmental protection industry,so that environmental protection enterprises ushered in a golden development period.However,the development time of the environmental protection industry is relatively short.In this case,a large number of enterprises have incomplete internal control systems and lack systematic internal control procedures;At the same time,due to the characteristics of large investment in the early stage of environmental protection projects and long time to recover all the invested funds,enterprises will face the problem of tight capital chain,which intensifies the business risks of enterprises.At the same time,environmental protection enterprises have high dependence on technology and great competitive pressure,which may become the motivation for enterprises to commit fraud,Moreover,the tax preference given by the national policy is large,which reduces the cost of financial cost of environmental protection enterprises and improves the possibility of accounting fraud;In addition,the mismatch between the income and cost of environmental protection enterprises gives environmental protection enterprises the opportunity to falsely increase their income and profits,increases the possibility of major misstatement risk of listed companies of environmental protection enterprises,and then expands the audit risk when accounting firms audit.In order to improve the work efficiency of certified public accountants and the quality of audit reports and reduce audit risks,accounting firms need to effectively control audit risks.However,at this stage,the research on how to control the audit risks is not comprehensive.This paper first analyzes the audit status and audit risk characteristics of listed companies of environmental protection enterprises,and then takes the punishment event of the Ministry of Finance for Kerong environment as the starting point,analyzes the statement data before and after the financial fraud of Kerong environment,combined with the changes and trends of business data before and after the financial fraud,and analyzes the relationship between Kerong environment and income Audit risk points related to overall operation and market environment and financial fraud motivation of environmental protection enterprises.