Research On Audit Risk Of Material Misstatement Of Listed Company's Annual Report

With the development of our country's economy into the fast lane,more and more companies hope that by listing in the capital market to gain a foothold.Followed by public awareness of the financial situation of listed companies,which makes the folk audit institutions become indispensable to the third party on the capital market.At the same time the public is more strict with timeliness and reliability of accounting information.certified public accountants face a lot of listed company's financial problems and compared with the past audit environment is more complex and changeable.These are for certified public accountants verification services business due to the risk to be reckoned with.This is partly because of deliberate fraud and internal control of listed companies is not perfect the material misstatement risk;On the other hand,it is because of a shortage of certified public accountants competence,practice audit procedures performed during the process of failure and detection risk.How to effectively identify existing in the practice of certified public accountants audit risk,and use reasonable means to resolve these risks,in order to reduce possible punishment,certified public accountants certified public accountants may suffer loss reduction is a flourishing industry.The material misstatement cases form of listed company Xintai electric in the financial statements,the audit staff to identify and respond to the risk of material misstatement will not cause higher audit risk to the CPA,as the Commission confirmed Xintai electric fraud,Beijing Xinghua audit also ended in failure,this caused a bad influence to the CPA audit itself and the entire industry.Then,in the face of the possible misstatement in the annual reports of listed companies,what are the audit strategies available in the perspective of certified public accountants,in order to reduce audit risk and smooth completion of audit work?The research of this article is based on the above background.The paper is based on xin tai electric event specific case studies.Earnestly analyzed the certified public accountant in the face of the material misstatement risk identification and deal with problems.In this paper,the first comprehensive combed the related literature at home and abroad,through the comparative analysis,find out domestic and foreign research in common;Then a heavier blunders at risk,audit risk and the risk guidance auditing theory from three aspects are expounded.On this basis,in order to xin tai electrical fraud listed and IPO financial fraud events for clues to the analysis of the material misstatement risk faced by certified public accountants.And in July 2016 the China securities regulatory commission in Beijing xinghua and its signature with the penalty decision of certified public accountants,certified public accountants to the project audit.It is in the SEC investigation of node xin tai electric will replaced by maple tian jian in 2015 annual audit institutions,this can not help but make people doubt whether the listed company in protecting the predecessor auditor.Beijing xinghua to xin tai electric listed during the financial statements of the financial statements and the subsequent two years without reservations audit report issued,their professional competence or professional ethics are grim.Through the analysis of factors that lead to Xintai electric annual report of the existence of the risk of material misstatement and CPA exposed in identifying and dealing with these risks problem can be obtained from the overall level,technical level,quality level and human resources level control measures to better identify and respond to the risks of material misstatement of the annual report of listed companies.In this paper,through the audit of the case of Xintai electric,and draw on the relevant theories to make case analysis more available,with the author's practice experience in the office,make the case analysis more in line with the actual situation.From the perspective of certified public accountants,we get the audit strategy to deal with the risk of major misstatement of the listed company's annual reports.In providing the public with a new perspective of the listed company operating condition at the same time trying to improve the audit quality of accounting firms,win back people's trust in the auditing profession and reduce their risk of practice to provide new thinking.