Identification And Response Of Audit Risk Of Listed Companies In General Equipment Manufacturing Industry

Manufacturing industry is the main body of the national economy,and China’s general equipment manufacturing enterprises are not optimistic about their financial performance due to the unbalanced development of the long-term industrial chain,low concentration,and lack of market competitiveness of high-end products.Next,there is a high risk of fraud in order to whitewash the business performance.Financial fraud and audit risk are accompanied by each other,and financial fraud will inevitably lead to audit risk.All listed companies in the manufacturing industry listed in the general equipment manufacturing industry found that there were more violations and ranked seventh among all listed companies in manufacturing,and the impact could not be ignored.Kunming Machine Tool,a listed company in the general equipment manufacturing industry,combines its unique business model to upgrade traditional fraud techniques,and its audit risk of financial fraud is high.Therefore,this paper takes the Kunming machine tool fraud case as an example,and uses the modern risk-oriented audit model to analyze its fraud characteristics and identify and prevent the corresponding audit risks.This paper firstly reads and collects literature data,and sorts out research related to financial fraud,audit risk model,domestic and foreign research and financial fraud and audit risk,and makes general comments.The related theoretical foundations such as the theory of fraud motivation,the theory of information asymmetry and the modern risk-oriented audit risk model are put forward,and the model is analyzed and studied.Secondly,through the descriptive statistics of the general equipment manufacturing industry,it is found that the impact of fraud in the fictitious profit of the listed equipment manufacturing companies can not be ignored,and the audit risk of the general equipment manufacturing industry is identified and analyzed.The occurrence of the machine tool fraud case in Kunming has industry characteristics.This paper takes Kunming machine tool as the main case,mainly introduces the identification of the major misstatement risk of the general equipment manufacturing industry and the risk of the firm inspection,including the management mode of the financial statement hierarchy.Risks of problems,weak internal controls,and the risk of frequent changes to the firm in the short term;audit risk of delisting at the level of recognition and audit risk of inventory overstock due to overcapacity.Finally,the paper puts forward suggestions for dealing with the audit risk of general equipment manufacturing enterprises.The firm should pay attention to the compliance of revenue recognition,initiate inventory monitoring procedures,and implement deadline test for operating income;and implement follow-up audit of general equipment manufacturing;Auditors need to ensure professionalism while ensuring their full independence.In the audit of listed companies in the general equipment manufacturing industry,accounting firms should focus on the characteristics of the industry and focus on high-frequency fraud methods and types to achieve the purpose of reducing audit risks and improving audit efficiency under limited resources.Conducive to the healthy development of China’s general equipment manufacturing industry.