Study On The Assessment And Control Of Material Misstatement Risks Of Listed Companies Under Performance Commitments

With the development of capital market,M&A restructuring is gradually used by more companies to integrate resources,improve industrial structure and enhance core competitiveness.Performance compensation commitment is generated by stock issuance,asset purchase,M&A restructuring and other transactions in the capital market.When conducting transactions,listed companies or sellers put forward performance compensation commitment as a special compensation clause in order to reduce the risk caused by information asymmetry and have the need to maintain the company’s image and increase investors’ confidence.From the theoretical point of view,the performance promise can avoid the situation that small and medium shareholders are infringed by information disadvantage,but from the perspective of audit risk,the performance promise has different risk points from the traditional audit,which makes the rights and interests of small and medium shareholders infringed,and will lead to greater audit risk in practice,and the risk of material misstatement is also increased accordingly.As an audit researcher,we should study the risk points of material misstatement of listed companies under performance commitment,identify the risk factors that have a deeper impact on the risk of material misstatement,and formulate reasonable further audit procedures for them.The existing research has studied more audit risks of IPO companies,but less research on the risk of material misstatement of listed companies under performance commitment.This paper selects ZANGGE HOLDING COMPANY LIMITED as the case study object,and designs the index table for assessing the risk of material misstatement of listed companies under performance commitment,quantifies and analyzes its material misstatement risk points,and assesses the degree of material misstatement risk of ZANGGE HOLDING COMPANY LIMITED,so that it can provide reference for CPAs to assess the material misstatement risk of enterprises in this situation and make quick response measures.This paper first describes the research background and overall framework of the article,combines the reading and summary of a large amount of literature and relevant theories,analyzes the current situation of performance commitment and the causes of audit risk formation under performance commitment,then introduces the case company and the firm,and then builds a material misstatement risk evaluation index table based on AHP-FCE,and conducts an in-depth analysis of the case of ZANGGE HOLDING COMPANY LIMITED,including its External environment and internal environment,combine the case with the quantification process of material misstatement risk,and finally arrive at the quantification results of material misstatement risk under performance commitment: the level of risk of material misstatement for listed companies under performance commitments is "high",the risk points of material misstatement of the enterprise mainly exist in internal control deficiencies,changes in the financial performance situation of the enterprise and performance commitment,and propose countermeasures and suggestions to prevent the risk accordingly.In summary,this paper features the study of listed companies under performance commitments,analyzes the special risk points that can occur in the audit process of listed companies due to performance compensation commitments,and quantitatively assesses the material misstatement risk of enterprises through the AHP-FCE method,analyzes the main risk factors affecting misstatements,and proposes countermeasures and recommendations to CPAs to prevent audit failures.