| With the continuous development of the capital market,the bulk commodity trade in China has gradually grown as well.At the same time,the country’s supervision has gradually strengthened,but the way enterprises carry out financial fraud has become more hidden,and the corresponding audit difficulty has also increased.In addition,China’s listed companies no longer only engage in fraud through simple on-the-books manipulation,but fabricate external transaction matters to achieve the purpose of fraud.Listed companies trading in bulk commodities often involve trade financing due to the large demand for funds,but colluding with supply chain enterprises through fictitious transactions to conduct financing trade is expressly prohibited by the State-owned Assets Supervision and Administration Commission.However,in this case,the company used the particularity of bulk commodity trade,fabricated the transaction background,and carried out financing trade fraud with the cooperation of supply chain enterprises.Drawing on the principles of risk-oriented auditing,this study initially investigates the features of risk associated with auditing commodity trading in listed companies,delves into the factors impacting material misstatement risk,and proceeds to identify and scrutinize the determinants of risk.Then,the case study of Company G audited by H Law Firm found that:(1)The risk of major misstatement in bulk commodity trade of listed companies mainly includes the risk of enterprises using the supply chain to cooperate with financing trade in bulk commodity trade,the formation of insider control by enterprises,enterprise operation risks,trade inventory risks and bad debt risks of credit sales mode.(2)The main risks to be examined are the lack of professional prudence among auditors,inadequate implementation of audit procedures,and some shortcomings in the quality control of H Audit Firm.(3)Considering the detected material misstatement risk,the certified public accountant can take the following countermeasures: use the gross margin analysis method to prevent the idling business of enterprises in bulk commodity trade,thoroughly examine upstream and downstream entities within the trading chain,concentrate on the governance structure of the audited unit,pay attention to the financial abnormalities of the enterprise,,and strengthen the analysis and control of current funds.(4)To deal with inspection risks,we can refer to the characteristics of bulk commodities to determine the focus of risk assessment and improve audit procedures,certified public accountants should maintain professional suspicion at all times,strictly implement the monitoring procedures of bulk inventory,accounting firms should strengthen audit quality control,and finally digital systems can be used to help identify trade fraud.This paper studies the identification and response of commodity trade audit risks of listed companies through literature analysis and case analysis,hoping to provide ideas and references for accounting firms to reduce audit risks,improve the quality of commodity trade audits,and reduce the occurrence of audit failures. |
