Audit Risk Evaluation Of Listed Companies In The Pharmaceutical Manufacturing Industry

As China’s economy continues to develop and its production capacity grows,General Secretary Xi Jinping emphasized in the report of the 20 th Party Congress the need to build a "healthy China",and the issue of national health is receiving more and more attention.As an important pillar industry,pharmaceutical manufacturing industry tries to protect national health,by achieving progress for China’s sustainable economic development to inject new momentum,along with the national key support and close attention.However,in recent years,the financial fraud of pharmaceutical manufacturing enterprises,which is the focus of development,has been common,involving huge amounts of money and hidden fraudulent means,making it difficult to guarantee the audit quality of companies in this industry.The paper firstly compares the relevant domestic and international literature,and secondly summarizes the key audit matters of listed companies in the pharmaceutical manufacturing industry by hand,so as to lay the foundation for analyzing the main audit risks in this industry.Thirdly,the paper analyzes the audit risk of this industry from the financial statement level and the determination level respectively,selects relevant indicators accordingly,then uses the fuzzy comprehensive evaluation method to construct a model in order to quantitatively evaluate the audit risk of pharmaceutical manufacturing industry.Fourth,taking Kangmei Pharmaceuticals as an example,the paper analyzes the relevant risks item by item and applies the aforementioned model for audit risk evaluation and result analysis.Finally,countermeasure suggestions for preventing and reducing audit risks of listed companies in the pharmaceutical industry are proposed.It is found that the pharmaceutical industry has significant characteristics and high audit risk levels,and there are some industry-specific audit risks at the financial statement level and determination level.Finally,from the perspective of certified public accountants,it proposes relevant countermeasures to control audit risk and improve audit quality,so as to achieve sustainable development of the industry and improve the order of the capital market.