Audit Risk Identification And Assessment Of Auto Parts Industry

The auto parts industry,as the front-end of the automobile chain,is of paramount importance to the advancement of the automobile industry,and its growth has a considerable effect on the comfort,dependability,and safety of automobile products.Under the influence of the 14th Five-Year Plan,the overall recovery of the auto industry in 2021 will drive the continuous development of the auto parts industry.Stimulated by the recovery of national policies and consumer demand,the auto parts industry will continue to develop in the future,with accelerated growth of industry income,enhanced industry concentration and intensified industry competition.Mergers and acquisitions will become the necessary means for auto parts enterprises to expand market share and improve competitiveness.The audit of auto parts enterprises will also bring auditors more challenges in the aspects of goodwill impairment,revenue recognition and so on.The proper identification and assessment of audit risks will play an important role in the normal development of audit work.At present,the research on the auto parts industry mostly focuses on the internal control and specific merger and reorganization events,and the research on the audit risk of the industry is less.In this context,this paper selects the auto parts industry to carry out detailed analysis and research on its audit risk identification and evaluation.Firstly,this paper analyzes the market and competition situation,policy supervision situation and audit characteristics identified according to key audit matters in the auto parts industry.On this basis,it identifies and analyzes the audit risk elements of the auto parts industry,so as to build the audit risk evaluation system of auto parts.By using C-OWA(ordered weighted average operator)method,the collected expert opinions are evaluated,the identified material misstatement risk factors and inspection risk factors are weighted,and a weighting system for audit risk factors is constructed.Steyr(reported financial fraud in 2014-2016 in 2021)is selected as a case to analyze the audit risks related to the case,collect the evaluation of relevant experts,and use the normal cloud model to measure the index values of the constructed expert evaluation set,so as to build an early warning model of audit risks.Finally,according to the above analysis,the paper forms the research conclusion,and on the basis of the industrial audit risk identification and Steyr case analysis,puts forward the corresponding suggestions for the relevant material misstatement risk and inspection risk,and puts forward the shortcomings of the research.In this paper,it is concluded that in addition to the revenue recognition and goodwill impairment in key audit matters,the risk factors prone to material misstatement in this industry also have a high weight of R&D investment,internal control and strategic business risk of the enterprise,which should also be evaluated.According to the warning results of the normal cloud model,the risk of material misstatement and the risk of inspection are both high risks,and the risk of material misstatement is more likely to develop into high risk than the risk of inspection.In terms of the risk of material misstatement,more measures should be taken to deal with and prevent it.