Case Study On Control Of Audit Risk Of ZH Software Company

China's securities market has been established more than 20 years,financial fraud cases of the listed company are also increasing.In recent years,distortion of accounting and audit failure cases of the software industry appear frequently,due to the industry characteristics,such as income affirmed by the schedule of completion,revenue recognition varies from different sales policy,simple business process which not have purchase and inventory process as in traditional industry,weak cost and income matching and so on.The software industry has become the special concern of auditor audit mission.This paper summarizes the related theories of audit risk control,and analysis the audit risk of the software industry,then introduce the case of ZH software company and conclude the causes of the audit failure from the angle of audit firm which led to the failure of finding companies inflated profits through early recognition of software revenues,delay recognition of labor costs and so on.at last,give suggestions and measures to control the audit risk,including more effective assessment of exited mistakes,improve the availability of internal control test,take a better use of analysis program,especially in the fields of revenue and labor cost,pay more attention on the quality of audit evidence in key fields,and enhance the quality of firm,in order to provide thought for auditing other software enterprises.The innovation of this paper can be concluded as follows: on the one hand,now there is rare research on the audit case of software enterprises,this paper has certain innovation;on the other hand,the paper concludes the causes of the audit failure from the angle of audit firm,in a more in-depth,through way.By analyzing the fraud case of ZH software company,the paper give suggestions and measures for auditors to control the audit risk of ZH software company.The paper can also be used as an example,providing ideas for the follow-up audit of software enterprise.