Research On The Risk Of Material Misstatement And The Responses Of Online Education Enterprises

The rapid change of Internet technology has given birth to the online education industry.At first,the popularity of the online education industry was not high,but then under the development of industry,online education was gradually accepted by the public.What’s more,the scale of online education enterprises achieved rapid growth.After the outbreak of the epidemic,schools across the country were prohibited from returning to school,and offline teaching activities were completely suspended.Online education has finally shown its outstanding advantages over traditional offline education models,and has achieved unprecedented development.But at the same time,online education enterprises are not mature enough,their management and business models are not perfect.Moreover,due to the complexity of online education enterprises’ income recognition and the lack of relevant policy guidance,certified public accountants will face higher challenges when they audit the online education enterprises.In this paper,the author takes Z Enterprise as an example to explore the risk of material misstatement of online education enterprises,and tries to propose corresponding responses.Firstly,the paper identifies and assesses the risk of material misstatement at the financial statement level.Due to the characteristics of online education enterprises,the paper comprehensively analyzes the risk of industry conditions,policy changes,market supervision and possible business strategies faced by online education enterprises.Secondly,this paper identifies and assesses the risk of material misstatement at the identification level of online education enterprises,and mainly analyzes the possible risks of online education companies’ operating income,R&D expenditures,related parties and their transactions.Thirdly,in view of the analyzed risks,this paper proposes corresponding responses from two levels.Finally,this paper takes the audit of Z Enterprise by T Certified Public Accountants as an example to conduct a systematic analysis.