Research On Audit Risk Identification And Response Of Film And Television Enterprises

In recent years,increasing accounting firms have been criticized and punished by the CSRC,the Ministry of Finance and the CICPA because of failing to validly identify and response to audit risks,litigation cases against the audit business of accounting firms often occur,which have exposed the hidden dangers of accounting firms in the identification and response of audit risks.To reduce audit risks,accounting firms should improve their ability to identify and response to audit risks.At the same time,because of the tighter regulation,more intense competition and significant environment changes,the business risk of film and television enterprises increases,and the audit risk of accounting firms auditing film and television enterprises also increases.The film and television industry has its own characteristics,such as high investments and high risk,and is greatly affected by policy supervision.This means that accounting firms cannot apply the audit methods of traditional industries in the process of auditing film and television enterprises,but should identify and response to audit risks in combination with their characteristics and audit difficulties.In 2021,Beijing Xinghua accounting firm was punished by the CSRC for the inadequate implementation of audit procedures during the audit of Huanrui Century Co.,Ltd.,which is the most serious case among the accounting firms auditing the film and television industry,which is quite representative.Therefore,with the help of the case of Huanrui Century audit of Xinghua accounting firm,this thesis aims to offer the better suggestions for accounting firms to identify and response to the audit risks of film and television enterprises.Using the case study method,this thesis takes the case of Beijing Xinghua accounting firm’s audit of Huanrui Century Co.,Ltd.as the research object.by the case study,this thesis aims to offer the better advice for accounting firms to response to the audit risk of film and television enterprises.Firstly,the author combs the relevant literature on audit risk identification and response,which lays a theoretical foundation for this thesis,then analyzes the characteristics and audit difficulties of film and television enterprises,and then from the two levels of major misstatement risk and inspection risk,the audit risks that accounting firms should identify when auditing film and television enterprises are analyzed in detail.Then the author selects a representative case in the film and television industry,that is,the case of Xinghua accounting firm auditing Huanrui Century,and analyzes in detail the problems identified by Xinghua in dealing with the audit risks of Huanrui Century.Finally,the author puts forward three optimization suggestions on the risk response of accounting firms.First,the author puts forward suggestions on how to response to the major misstatement risk of regulatory changes and industrial environment changes.Second,the author puts forward optimization suggestions on the further audit procedures of revenue,cost and accounts receivable,Third,in view of the inspection risk,it also gives advice on strengthening the quality control of accounting firms in consideration of the characteristics of film and television enterprises.It is hoped that through the research on the audit risk identification and response of Huanrui Century Co.,Ltd.,this thesis can help accounting firms improve the audit risk identification and response level of film and television enterprises,and then promote the audit quality of film and television enterprises,and reduce the audit risk faced by accounting firms auditing film and television enterprises.