Research On Audit Risk Of Listed Companies Based On The Business Model Of "Whole Industry Chain"

With the rapid development of the national economy,the Third Plenary Session of the 16 th CPC Central Committee adopted the Decision of the CPC Central Committee on Several Issues Concerning the Improvement of the Socialist Market Economic System,which proposed the idea of overall development and the construction of the industrial chain.At the 2012 Central Economic Work Conference,the innovation of business models was promoted to the national strategic level.In 2009,COFCO Group first proposed the "whole industry chain" business model,and its effect gradually showed,which caused other industries to follow.However,the "whole industry chain" business model also accompanied with huge risks.The deliberate pursuit of the "whole industry chain" is easy to fall into blind diversification.Enterprises may have many industrial chain links that are difficult to achieve strategic organic coordination,resulting in different products occupying a large amount of capital and serious inventory backlog,In order to meet the expectations of the majority of investors,some listed companies gained market favor by whitewashing their financial statements.At the same time,under the "whole industry chain" business model,listed companies incorporate the upstream and downstream of the industry chain into the same enterprise at the same time.The means of financial fraud are more complex and hidden.Auditors often cannot easily identify these hidden and complex financial fraud means and face huge audit risks.Based on the above background,this paper selects Ruihua Certified Public Accountants to audit the case of Great Wall Animation,and discusses the identification and prevention of audit risks from the perspective of the whole industry chain business model.This paper uses the literature research method and case analysis method,on the basis of combing the relevant literature of domestic and foreign scholars on the "whole industry chain" business model and audit risk,taking Ruihua Certified Public Accountants’ audit of Great Wall Animation as an example,specifically analyzes the major misstatement risk of financial statements faced by the firm and its auditors under the "whole industry chain" business model Identify the risk of material misstatement at the level and the inspection risk of auditors in the process of audit implementation.The study found that the major misstatement risk at the level of financial statements mainly lies in the strategic risk,operational risk,internal control risk and corporate governance risk brought by the implementation of the "whole industry chain" business model.The identified level of risk mainly lies in the inventory,accounts receivable,goodwill depreciation,income and expense items.The inspection risk is specifically manifested in the lack of independence of auditors The business model of "whole industry chain" lacks due professional caution and does not implement sufficient and effective audit procedures.According to the results of audit risk analysis under the "whole industry chain" business model,this paper proposes countermeasures to prevent audit risks from three aspects: the risk of major misstatement at the financial statement level,the risk of major misstatement at the recognition level and the risk of inspection.Based on the perspective of "whole industry chain" business model,this paper analyzes the formation and prevention of audit risk by taking Ruihua Audit Great Wall Animation as an example,expands the research scope of the combination of "whole industry chain" business model and audit risk,and enriches the theoretical research of audit risk.With the implementation of the "whole industry chain" business model,the fraud means of listed companies are more hidden and complex.This paper analyzes the specific causes of audit risk and its countermeasures from the perspective of the financial reporting risks of listed companies that may be caused by the implementation of the "whole industry chain" business model,which can be sufficient for auditors to conduct annual report audit in the future,To prevent the audit risks arising from the implementation of the "whole industry chain" business model by listed companies,provide valuable reference and reference.