Mergers And Acquisitions Of Audit Risk And Prevention

As the main mode of capital operation, enterprise merger is very important means to regulate economic structure, reform enterprises and increase economic benefit. The persons both from theory and practice circle have admitted to its positive significance regardless of many other problems. Merger is a kind of complicated and systematic project involving various difficulties on law, finance, audit and management, which lead to high risk.Generalized merger audit indicates the activities that audit body including CPA and inner auditor together with professionals like lawyer, CAE, CPT, CCE who are entrusted to become as financial consultant or carry out special audit take part in the merger and provide professional service of consultant, audit and report compilation, etc to decrease merger risk and realize merger target. An extending merger audit procedure should audit invisible asset as well as visible asset. Merger audit includes 7 aspects of audit work such as macro environment audit, law audit, products audit and management audit. The merger audit target should base on the audit to legitimacy, feasibility, benefit, reality of relative program, information, object provided by merger body.The complete audit risk concept should be explained on broad sense. It includes not only the loss or responsibility risk resulted by discrimination between audit result and reality due to the shortcoming that took place during audit period but also the operation risk resulted by the operation failure leading to the disability of debt reimbursement orbankruptcy, which will be possibly harmful to the auditor and audit unit. Regarding strategic and systematic as basic idea, modern risky and basic audit explores audit unit in broad economic environment so as to improve the science and utility of audit method in new social economic environment.Merger is a kind of high-risk economic activity. It influences relative persons and total social economic life, which decides the high risk and huge responsibility of merger audit. The involvement of merger increases not only the fixed risk of merger audit but also plenty of new risk factors that are relative with merger. The knowledge of the new risk factors and the evaluation of these special risk levers become very important questions, which should be considered in merger audit.After analyzing and describing some basic questions like risk ascertain and confirmation, measurement and evaluation, the thesis author raises personal comments on the important audit risk and guard measurement according to three basic stages of merger.