Research On The Audit Risk Of Internet Video Companies

Internet video platforms carry various forms of video content and have maintained rapid development since their establishment.By the end of 2020,the number of Internet users in our country was 989 million,and the Internet penetration rate reached 70.4%.Among them,the number of Internet video users was 927 million,accounting for 93.7%of the total Internet users.While maintaining rapid development,the audit environment,audit objects,and audit contents of the Internet video industry have undergone great changes,adding many new challenges to auditors’ work.However,in terms of audit risk of Internet video companies,domestic and foreign scholars have done little research,resulting in the lack of theoretical support for audit work in this emerging industry.In view of the above situation,the research question of this paper is: what are the particularity of Internet video company audit and audit risks,and what measures should be taken to deal with these audit risks? The practical significance of this paper is to analyze and summarize the audit risks and influencing factors of the Internet video industry,to provide reference for the audit work of certified public accountants,and to help companies prevent risks in their daily operations.Firstly,this paper summarizes the research status and defects of Internet video company audit at home and abroad,and analyzes the characteristics and audit risks of Internet video companies by combining modern audit risk-oriented model and information asymmetry theory.Then,the audit risk of i QIYI is analyzed from the level of material misstatement and inspection.Finally,the paper puts forward suggestions to deal with the audit risk of Internet video industry.This paper finds that Internet video companies have the following audit risks :(1)major misstatement risks at the level of financial statements are caused by intensified industry regulation,intensified competition,profit difficulties and internal control limitations in the context of information technology.(2)VIP members’ value-added services are difficult to split,the recognition of content assets highly dependent on management’s judgment,and subsequent measurement of intangible assets lead to material misstatement risks at the identification level.(3)Accounting informationization increases the difficulty of audit work and auditors lack the ability to audit big data,leading to higher inspection risks.In view of the risks of different levels,this paper puts forward corresponding preventive measures at the end.First,certified public accountants should combine non-financial information to conduct a more comprehensive analysis of the business situation of companies.Understand the business process of the video platform,fully evaluate the internal control system,and use IT technology to implement control tests and substantive procedures;Continuously improve the ability of CPA to audit big data,and continuously optimize the Internet audit procedures.