Research On Audit Risk Based On Corporate Cash Management Business

China’s cash management business started in the late 1990 s and was first introduced by citibank.Cash management business is favored by enterprises because it can help customers effectively use funds.More and more listed companies choose this business to optimize the allocation of resources and improve the operation efficiency of funds.With the widespread use of cash management business,its problems have become increasingly prominent.Listed companies may use cash management business for financial fraud,which seriously disturbs the market order and hinders the healthy development of social economy.Therefore,regulators gradually tighten their supervision of the financial market.On April 27,2018,the People’s Bank of China,bank of China insurance regulatory commission,the China Securities Regulatory Commission,the State Administration of Foreign Exchange jointly issued by financial institutions on the specification of asset management business guidance ",emphasize the file article 24 financial institutions may not take advantage of the capital asset management products and related party interest transfer behavior,this shows that our country financial management ability is insufficient,the business itself using asset management products to big shareholders occupy funds of listed company provides an opportunity to make financial fraud by the auditor,such as daily connection transaction fraud using conventional means of audit program can be tested,developed into more covert instruments such as financial instruments.In this context,this paper selects the audit case of kang dexin of ruihua accounting firm and discusses the identification and prevention of auditors’ audit risks based on cash management business,an asset management business launched by the bank.This paper adopts the literature research method and case study method.Firstly,it sorted out the related literature of cash management business and audit risk,and demonstrated the formation mechanism of audit risk under cash management business by principal-agent theory,fraud triangle theory and risk-oriented audit theory.Secondly ruihua audit kang new,for example,under the specific analysis of the cash management business ruihua certified public accountants and auditors facing material misstatement risk andcheck risk,risk of material misstatement embodied in the level of financial statements and that level of risk,detection risk embodied in lack of audit independence,not being professional suspicion and did not perform as they should be fully effective audit procedures.Finally,for cash management business,from the two dimensions of the risk of big mistake and the risk of inspection proposed to prevent audit risk specific measures.Based on the perspective of cash management business,this paper takes ruihua audit kang dexin as an example to analyze the formation and prevention of audit risks,expands the research scope of combining cash management business with audit risks,and enriches the theoretical research on audit risks.As to enhance supervision,the financial fraud of listed company means more to conceal and complicated,in this paper,according to the characteristics of the cash management business from cash management business could cause the financial statements of listed companies of misstatement or omission of risk,analyses the causes of the formation of audit risk and the specific measures to deal with risks,can be cash management business audit the auditor for the future,to prevent the resulting provide valuable reference to the audit risk,so as to reduce the possibility of audit risk.