Research On The Audit Risk Of Blue Mountains Technology Co.,Ltd Under Modern Risk-oriented Audit

The current market environment is rapidly changing,and the risks faced by enterprises are more diversified.Some enterprises’ operating conditions have plummeted due to inadequate risk management and control.In order to ensure the sustainable operation of the enterprise,the management can only take desperate measures to whitewash the financial statements and deliberately distort the real financial performance,which not only seriously damages the interests of the users of the financial statements,but also causes the crisis of trust in the audit industry.In order to improve audit quality,accounting firms begin to implement a modern riskoriented audit model,and use more scientific risk assessment procedures to help auditors identify the audit areas where there is a risk of material misstatement in the financial statements of the audited entity,so as to rationally allocate audit resources and reduce audit costs to the greatest extent.However,throughout the audit practice in recent years,there are still many deficiencies in the application of modern riskoriented audit in the working process,and the actual implementation effect is not good.Therefore,how to effectively use modern risk-oriented auditing to identify and assess the risk of material misstatement of the audited entity in combination with the industry characteristics,environment and operating status of the audited entity is still the focus of the current academic field.This paper takes the audit case of Blue Mountains Technology Co.,Ltd,a communication equipment manufacturing enterprise,as the starting point,firstly introduces the relevant general situation of Blue Mountains Technology Co.,Ltd and its communication equipment manufacturing industry,summarizes the industry characteristics of communication equipment manufacturing enterprises,and reviews the financial fraud of Blue Mountains Technology Co.,Ltd,understands the fraudulent means adopted by the company,and identifies the defects of the company’s supervision mechanism.Secondly,on the basis of modern risk-oriented audit,on the premise of fully understanding Blue Mountains Technology Co.,Ltd and its environment,combined with relevant information such as its strategic planning and the company’s operating status,the strategic risks and operational risks are analyzed respectively,and the related risks will be transferred to the items in the financial statements,and the audit fields that auditors should pay attention to are preliminarily determined.Furthermore,according to the risk control status of Blue Mountains Technology Co.,Ltd,the residual risk and the possibility of transforming into major misstatement risk are evaluated,and then the risks of material misstatement at the financial statement level and risks of material misstatement at the assertion level is identified and evaluated,so as to point out the direction for auditors to develop follow-up audit plans and implement appropriate audit procedures to obtain sufficient and appropriate audit evidence.At the same time,combined with the specific performance of auditors in the audit process of accounting firms,the inspection risk is analyzed to explore the causes of audit risk.Finally,the paper summarizes the experience and lessons of the audit failure of Blue Mountains Technology Co.,Ltd,and puts forward some suggestions,in order to provide references for auditors to effectively use modern risk-oriented audit to carry out audit work and deal with audit risks in the future audit work,when they undertake the audit business of communication technology enterprises like Blue Mountains Technology Co.,Ltd.