Audit Risk Of Financial Fraud Of King Kong Glass Identification And Prevention Research

In recent years,the financial fraud methods of listed companies have become increasingly "superb",and the third-party intermediary accounting firms have repeatedly stumbled in the audit process,resulting in increasing audit risks of financial fraud,and the outside world once questioned the audit quality.Although the regulatory authorities have issued relatively perfect rules and regulations on various behaviors of financial fraud,the issued rules and regulations lag behind the actual situation,resulting in an irregular vacuum period.Listed companies take the opportunity to "show their strength" and engage in various financial fraud behaviors,which is extremely harmful.In this thesis,the listed enterprise diamond glass is selected as the case study object.The main concerns are: what factors lead to audit risks in companies involved in financial fraud,and how to identify and prevent audit risks related to it more effectively? Based on this,from the perspective of accounting firm,thisthesis studies the audit risk of diamond glass hidden by financial fraud in successive years,and puts forward the corresponding prevention strategies.The results of thisthesis are as follows: first,due to fierce market and industry competition,inadequate internal control,and defects in business governance,CPA fails to fully identify the risk of material misstatement at the level of financial statements when they understand the audited entity and its environment;Second,due to the company’s non-operational transactions with related parties,which constitute capital occupation,abnormal fluctuations in the operating revenue of the main products,high and new qualification fraud caused tax evasion and other malpractices,increased the difficulty of CPA in identifying the risk of material misstatement;Third,the audit risks caused by accounting firms and their certified public accountants include the design and implementation of audit procedures tend to be streamlined,and they do not hold a high degree of professional suspicion and caution.The financial fraud methods of listed companies constantly bring out the new,and the audit risk control also put forward higher requirements,CPA should identify and evaluate the risk throughout the entire audit process,effectively evaluate the internal and external environment and internal control execution,screen the failure mechanism of enterprises,timely adjust the audit ideas.Reduce trust in information provided by senior management and implement more substantive audit procedures to reduce audit risks.Through the study of this thesis,we hope to help certified public accountants identify audit risks under financial fraud,help improve the quality of disclosed accounting information,and then safeguard the rights and interests of relevant stakeholders,and help promote the high-quality development of the securities market.