Research On Risk Assessment Of Substantial Misuse Of GEM Listed Companies

GEM listed companies to high-tech enterprises,is the country to develop China to create the power can not be ignored.The importance of the GEM listed companies and the difficulty of the audit,the auditors put forward higher requirements.In the past,the research on audit risk of listed companies on the GEM is mainly based on theoretical research,and the measures given are less practical and less easy to operate.Therefore,combined with the risk characteristics of listed companies on the GEM,it is necessary to study the assessment of the risk of material misstatement of financial statements.This paper points out the research background of the current GEM and the risk of material misstatement,and the theoretical and practical significance of the paper.Through the study of existing research results,to understand the status quo and the lack of research.Respectively,from the audit risk theory,the major misstatement of the relevant concepts and the characteristics of the GEM,etc.,to build the theoretical basis of the paper.Through the research on the relationship between the financial index and the material misstatement,the paper puts forward the risk assessment system of the major misstatement mainly based on the financial index.The selected 20 financial indicators reflect the four factors of financing factors,operating factors,development factors and cash flow factors.The non-financial indicators mainly reflect the internal governance factors of the enterprises.In this paper,we use the method of principal component analysis(BPA)for the analysis of the Company.Through the results of empirical research,it is found that the factors influencing the degree of significant misstatement are: The company's cash flow,total assets growth,the company's long-term solvency,the board of directors of the Board of Directors and the company's business situation,the company's current situation,short-term solvency.To the wrong company and non-misrepresentation of the company's comprehensive score as the dividing line,the division of high,medium and low risk levels.With the matching sample company to test and found that the recognition accuracy rate of more than 80%.This paper analyzes the risk situation from the perspective of the various factors of the case company,and validates the validity of the risk level of the material misstatement through the comprehensive score,and gives the way to deal with the risk.Finally,this paper makes a summary and prospect.