Research On Audit Risk Identification And Prevention Of Online Game Companies

Among Internet listed companies,Internet game companies occupy an important position.The online game industry continues to develop,the market scale is getting bigger and bigger,and online game companies are showing the characteristics of fierce market competition,many homogeneous products,frequent acquisitions and mergers,unstable R&D personnel,highly electronic business data,and novel profit models,which have led to the complexity,diversification and newness of audit risks in the industry.At present,the audit research on the Internet game industry is not sufficient,and few firms have made special transaction processing summaries in actual operation,and in audit practice,audit failure cases occur from time to time.Therefore,audit research for this industry has both theoretical innovation and practical guiding significance.Based on modern risk-oriented audit theory,this paper adopts the case study method to select Tianrun Digital Entertainment Company belonging to the Internet game industry as a case study for analysis.Tianrun Digital Entertainment Company is engaged in the Internet game industry,and its audit reports in recent years are all qualified opinions,which has certain audit risks.Starting from the company,the source of audit risk of Internet game enterprises is analyzed,and specific measures to reduce audit risk are proposed from the perspective of auditors.Through a comprehensive understanding of the Internet game industry market and regulatory laws and regulations,financial statement analysis of the company,comparison of key indicators with companies in the same industry,research on the company’s strategic direction,and inspection of internal control,it is concluded that the sources of material misstatement risk of Tianrun Digital Entertainment are divided into the following aspects:external environment risk,strategic transformation risk,corporate governance structure risk,financial instability risk,insufficient R&D capacity risk,goodwill impairment risk,revenue recognition risk;Inspection risks mainly come from the following aspects:business acceptance risks,communication difficulties risks,lack of professional auditors to deal with Internet games,lack of industry-specific audit software and lack of audit standards.According to the identified audit sources,rectification suggestions to reduce audit risks are put forward:comprehensive understanding of enterprise operation risks,strengthening control testing,strengthening information system auditing,strengthening audit of goodwill impairment,strengthening audit of revenue recognition and strengthening the quality control of firms,cultivating compound talents,innovating correspondence methods,using information technology to audit and other methods to reduce audit risks.Through the research of this paper,it is hoped that it can provide reference for audit risk identification for relevant industries of Internet game enterprise supervision departments.