The Impact Of New Retail Business Models On Audit Risk

In the era of mobile Internet,traditional retail enterprises are struggling under the impact of e-commerce model and consumer upgrading,and are in need of transformation;while with the rising cost of customer acquisition,the traffic bonus of e-commerce enterprises relying on the Internet for sales is gradually declining,and online growth is relatively weak.Under this circumstance,the new retail transformation of "online + offline" operation has become the general trend.Although the emergence of new retail has pointed out the direction for the development of enterprises,some supermarket chains have adopted this model and innovated their management in response to the development of the times,the audit industry has lagged behind in addressing the audit risks of enterprises in the new retail business model.At present,relevant research mainly focuses on the definition of new retail,the transformation of new retail business model,etc.Fewer studies focus on the audit risk response of supermarket chains under the new retail business model,and this paper aims to supplement the research theories in this area by means of case studies.In this paper,we review the existing domestic and international literature,sort out and summarize the research results.Based on the relevant literature and theories,SUN ART Retail Group Limited is selected as a typical case of a new retail supermarket chain enterprise,and a modern risk audit model is applied to analyze the case specifically,and finally the risk points of material misstatement risk and inspection risk of the case company and its causes mainly include the following aspects:(1)the risk of material misstatement at the financial statement level is mainly caused by the increased operational risk,the difficulty of internal control and the increased strategic risk.(1)The risk of material misstatement at the financial statement level is caused by increased operational risk,increased difficulty in internal control and increased strategic risk.(2)The risk of material misstatement at the recognition level is mainly caused by more complex revenue recognition,increased risk of inventory measurement,and increased related party transactions.(3)The increase in inspection risk mainly includes the characteristics of the new retail business model,which requires more comprehensive audit quality of auditors and the difficulty in obtaining audit evidence.Meanwhile,the following recommendations are made to address the above audit risks:(1)Pay attention to the operational risks of new retail enterprises,strengthen the assessment of internal control risks of new retail enterprises,and implement a more reasonable new retail development strategy.(2)Pay attention to the authenticity and integrity of the new retail enterprise’s revenue and the authenticity and accuracy of the new retail enterprise’s inventory.(3)Cultivate composite audit talents,update audit techniques,and obtain audit evidence through multiple channels.In general,this paper can provide audit methods that can be applied to the audits of other new retail supermarket chain enterprises,help CPAs effectively assess and respond to audit risks,and therefore have some practical guidance for improving audit quality.There are 14 figures,21 tables,and 34 references.