The Research Of Audit Risk Of Listed Companies On NEEQ

In 2016,the government pointed out that we should further promote the reform of NEEQ(National Equities Exchange and Quotations),in order to promote the development of the small & medium-sized enterprises(SMEs).With the support of national policies,NEEQ has developed rapidly.Behind the popular of NEEQ,the market system is,however,still in the exploratory stage,the rules of regulatory and penalties have not formed entirely,and the listed companies are lack of the ability on operating and management.In order to maintain the sound development of NEEQ,various market participants need to work together for solving problems.As one part of the market,accounting firm are responsible for the NEEQ's listed companies audit services,and the audit risk is the core of the implementation of Audit services.Therefore,the study that analyzing the reasons and solutions of listed companies audit risk not only to ensure the effective implementation of Audit services,but also to safeguarding the continued prosperity and stability of NEEQ,promoting the development of small and medium micro enterprises,and adding a strong driving force for China's economic development.This paper mainly uses two kinds of research methods including the literature research and case study.From the perspective of the accounting firm,this paper is based on the audit risk model that consists of risks of material misstatement and detection risk.This paper analyzes the causes and impact of audit risk arising through comparing similarities and differences between NEEQ and Main Board Market,and the audit risk prevention recommendations of NEEQ's listed companies for the accounting firm eventually.This paper consists of six chapters.The first chapter is introduction,which elaborates the research background and significance,research ideas and methods,and the brief description of the innovations and deficiencies.The second chapter is the literature review,which reviews the literature of audit risk model,material misstatement risk and inspection risk,and summarizes the conclusions of all the research.The third chapter is the review of NEEQ and the audit risk analysis of NEEQ's listed companies.It introduces the development process and present situation of NEEQ,and then clarifies the material misstatement risk and inspection risk that the accounting firms need to focus on when they audit the listed companies on NEEQ.By comparing the difference between NEEQ and the main board market,this chapter based on the audit risk model,and finds the reason of the audit risk of NEEQ's listed companies.The risk of material misstatement is analyzed in five aspects,including the environmental risk,strategic risk management,corporate governance,internal control and financial risk.The check risk mainly carries on the analysis from two aspects of accounting firms and individual auditors.The fourth part is case study.It selects a case which is a typical example of the NEEQ's listed companies to analyze.Combined with the enterprise's business characteristics and financial conditions,this chapter analyzes the risk of material misstatement and check risk analysis of this company,and puts forward the corresponding countermeasures for the auditors.The fifth chapter is the suggestions of preventing NEEQ's listed companies audit risk.According to the previous analysis of audit risk of the NEEQ's listed enterprise,this chapter puts forward some suggestions to prevent audit risk in two aspects from the material misstatement risk and inspection risk.The sixth chapter is conclusion,which makes a summary of the main conclusions of this paper.