Research On The Auditing Risk Of Kingenta Ecological Engineering Group Co.,Ltd.by DX Accounting Firm

With the continuous and rapid development of China’s economic market,China’s capital market is becoming more active,which requires the financial and nonfinancial information provided by enterprises to be transparent,truthful and accurate.Therefore,the annual report audit work has become increasingly complex,and the demand for audit has become higher and higher.The importance of audit is selfevident.In order to gain the trust of outside investors,public companies try to hide financial defects in order to attract more outside investors to participate in the financing.The frequent occurrence of financial fraud cases and the endless emergence of fraudulent means have seriously affected the investment decisions of users of financial statements,brought enormous economic losses to them,jeopardized the healthy development of the securities market,and made it difficult for certified public accountants to detect and respond to financial fraud.Accounting firms as well as certified public accountants should minimize audit risks,enhance public trust,and promote the long-term stable development of capital markets.This document selects the first company to be punished by the Securities Regulatory Commission in 2022,Kingenta Ecological Engineering Group Co.,Ltd.,as the research object of this article to study and analyze the audit risk issues of DX accounting firm on Kingenta enterprises.In this paper,based on the existing research results at home and abroad,we analyze and study the audit risks of DX accounting firm’s audit of Kingenta from the perspective of certified public accountants,based on four theories: information asymmetry theory,principal-agent theory,risk management theory and fraud triangle theory,using literature research method and qualitative and quantitative analysis methods.Firstly,describe the situation of the firm and the company,introduce the specific audit situation of the firm to the company,and then identify the existing audit risks from the perspectives of material misstatement risk and inspection risk,including not paying high attention to operational pressures,ignoring significant pressure on performance commitments,lack of analysis of internal control deficiencies,insufficient understanding of corporate governance structure,insufficient audit evidence,inadequate identification of analysis of internal control deficiencies,failure to attach importance to fictitious transactions,and violation of the principle of independence.The causes are analyzed,including lack of attention to business risks,failure of internal control testing,inadequate audit procedures,and inadequate professional competency.In response to the audit risks,proposing appropriate measures and recommendations,including strengthening the evaluation of business risks,testing the execution of internal control systems,implementing sound and effective audit procedures,and improving the professional competence of certified public accountants,thereby reducing the audit risks of certified public accountants.Finally,the conclusions of this paper are drawn.This article believes that DX accounting firms have not responded well to audit risks during the audit process,and certified public accountants should start with both major misstatement risks and inspection risks,and make corresponding countermeasures to ultimately significantly reduce audit risks.It is hoped that through the study of this paper,certified public accountants can be inspired and have certain reference significance.