Research On The Auditing Risk Of Mergers And Acquisitions

Our country’s M&A have been through nearly 30 years of history marked by Baoding Textile Mill merging Baoding Knitting Equipment Factory in 1984 and The bank of China group with China Resources Holdings merging Homelite investment co.,LTD in 1984.Especially after 2008 economic crisis,China’s M&A transactions ushered in a wave of rapid wave,not only in transaction amount but also in numbers of it.But M&A is alsoaneconomic activity of high risk and there might be immeasurable risk in the In the process of M&A.M&A will have an effect on company’s financial situation and its future strategies and developing direction.All kinds of risk in the process of M&A will finally influence the realization of the goal of enterprise’sM&A,even making the development of enterprises into a dilemma.So,in the process of M&A,an increasing number of firms will choose strong,experienced accounting firms and other professional intermediaries,which has become an indispensable part of the M&A activities.As a special auditing business,Merger auditing involves the implementation of the target company to verify the status of its assets,and activities of the feasibility of M&A,legitimacy and effectiveness of the assessment,M&A benefit analysis,thus meeting the needs of M&A related interests,improving the efficiency of M&A activities,and ultimately achieving the goal of M&A.In view of this,this paper actively explore the various risks that may arise in the process of M&A,and seek corresponding countermeasures.This paper takes M&Aauditing risk as the research object and analyzes various risk factors of merger auditing based on modern auditing risk model and proposes measures of prevention and response to merger auditing risk by analyzing the current situation and the causes,which will reduce the overall auditing risk to an acceptable level.The history of M&A activities in China is not long,and the theoretical research on the auditing risk of M&A is not perfect and mature and There are still many problems in the process of M&Aauditing which are not clear or need to be further studied and discussed.Therefore It is hoped that the research on M&Aauditing risk can further develop and perfect the auditing theory of M&A in our country,and put forward the preventive measures.On the one hand,It can guide the auditing practice and reduce the possibility of auditing failure,on the other hand It can help the M&Aenterprises to achieve the goal of M&A,improve the efficiency and benefit of the enterprise,and promote the development of the enterprise.