Research On Auditing Countermeasures Of Yabaite’s Financial Fraud

In recent years,cases of financial fraud and audit failures of listed companies at home and abroad have been erupting.Some listed companies have gone crazy at all costs in order to achieve the promised performance indicators,and some companies have been able to cover up the truth and be able to cover up the truth.Means have also become more and more "smart".On July 5,2018,the Shenzhen Stock Exchange issued a notice stating that Jiangsu Yabaite Technology Co.,Ltd.has been transferred to the public security organs according to law and is subject to compulsory delisting due to suspected information disclosure violations.As the first small and medium-sized board to force the delisting stocks,Yabaite fictitiously cross-border large-scale “One Belt,One Road” cross-border,and used information flow,cash flow and logistics to create fraud,successfully defrauded two registrations of Zhonghua Accounting Firm.The accountant has caused the audit to fail.It makes the CPA difficult to blame and faces the punishment of the CSRC.In the face of such systematic financial fraud involving offshore projects,regular audit procedures often do not work well,and registrars need to develop more effective audit strategies.This paper uses a combination of case analysis and literature research to analyze the methods and characteristics of financial fraud in Jiangsu Yabaite Technology Co.,Ltd.,and uses the audit risk model to analyze its audit risk.Then,according to the characteristics of financial fraud of Jiangsu Yabaite Technology Co.,Ltd.,the corresponding audit response strategy is proposed.The following conclusions can be drawn: For cross-border financial fraud auditors,the following measures can be taken to deal with: attach great importance to risk assessment;vigorously improve their professional quality;pay attention to the preparation of overseas audit;and actively use the work of experts.For systematic financial fraud,the following measures can be taken: on-site inspections of upstream and downstream of the audited units;in-depth exploration of related parties of the enterprise;strict investigation of logistics information;and strict review of cash flow.Through the research of this thesis,I hope that the CPA can effectively identify and respond to such financial fraud in the future to provide an effective auditing strategy and reduce the audit risk of CPA.