Research On Audit Risks Of New Retail Companies On Shanghai Laiyifen Co.Ltd

Since the 19th National Congress,China has introduced a number of policies to vigorously develop and promote the deep integration of the Internet,big data and other intelligent technologies with the real economy.The traditional retail industry has responded positively to the national policy and has transformed itself towards "new" retailing.The so-called new retail is a combination of online retail platform,offline physical stores and modern logistics industry,forming an "Internet + retail" business model.Compared with the traditional retailing model,the new retailing model is more complex in terms of business operation.Enterprises are highly dependent on information systems,and their vouchers and transaction data are electronic in nature,which makes it difficult to guarantee the authenticity,integrity and reliability of enterprise data due to the inherent high risks.It is these "new" features that cause new retail enterprises to have completely different audit risk points from traditional retail industry.Therefore,it is necessary to analyze the audit risk in the new retailing model in light of the new audit characteristics and how to use audit tools to deal with the audit risk of new retailing companies.This paper first summarizes the existing domestic and international literature from three perspectives: new retailing,audit risk,and new retail audit risk.On this basis,the meaning of new retailing is defined and relevant theories are introduced as the theoretical basis of this paper.Secondly,this paper applies the case study method and selects a representative company in the new retail model,Shanghai Laiyifen Company Limited(short for Laiyifen Company),for the study.The corporate structure,financial situation,and business model of Laiyifen are introduced,and the typical characteristics of the company under the new retail model are presented.Using the audit risk model,a detailed risk analysis of the case company is conducted from two aspects:material misstatement risk and inspection risk;finally,targeted suggestions are made for the prevention of audit risks in new retail companies in conjunction with the case to improve audit quality and efficiency.Based on the analysis of the article,it is concluded that when auditing new retail companies,auditors should address the special audit risk points of new retail companies,fully consider the factors applicable to the audit risk framework of new retail companies,and develop a full range of effective strategies based on the risks encountered in order to maximize audit risk avoidance and treatment.In this paper,we hope that the analysis of audit risks of Laiyifen,a new retail company,will provide certain reference for accounting firms to audit new retail companies,implement more targeted audit procedures,and guarantee audit quality.