The Listed Company Financial Derivatives Risk Management Audit Research

Recently, with the accelerating process of economic globalization and integration,international competition and global financial risks are increasing. As one of thesignificant hedging instruments in the financial market, financial derivatives could helpenterprises to cope with intense competition and avoid potential risks effectively.However, financial derivatives is a two edged sword. It might bring dilemmas to theenterprise if inappropriately exercised. Though financial derivatives are risky, they stillmake a great promotion to our country’s economic development. Therefore, it is aninevitable choice for our country to develop a financial derivatives market. It hasbecome the focus of the theoretical and practical communities on how to regulate thefinancial derivatives’ risk research. This article considered the demand of reality, usedthe standard research method, started with the risk analysis and revealed the importanceof audit risk management for listed companies’ financial derivatives. Meanwhile,combined with the risk management of listed companies, we design the process offinancial derivatives risk management audit, and applied it to the actual auditing cases.Based on this mode, by analyzing the problems Chinese enterprises are facing onimplementing audit risk management, I raise rational proposals. Consequently, thisarticle has useful instructional value for monitoring and auditing financial derivativesrisk on theoretical and practical points.