Research On The Audit Risk Based On Valuation Adjustment Mechanism

In recent years,as an important way to int egrate resources and opt imize industrial structure o f listed co mpanies,M & A is frequent ly used in the capit al market.The Valuat io n Adjust ment Mechanism,which is applied to M & A act ivit ies,undoubted ly has a posit ive impact on impro ving financ ing effic ienc y and protect ing sma ll and med ium-sized investors.However,for cert ified public account ants,listed co mpanies invo lving high per formance co mmit ment are more like ly to generate financ ia l fraud mot ivat io n,which leads to higher audit risk.The increasing number o f financ ia l fraud cases under Valuat io n Adjust ment Mechanism shou ld be pa id full attent io n to by cert ified public accountant s,so the research o n audit risk based on Valuat io n Adjust ment Mechanism is necessary and valuable.Lian Tronics' frequent perfor mance co mmit ment M & A behavior had led to the occurrence o f financ ia l fraud,so it was subject to the top penalt y o f t he CSRC.Lixin cert ified public accountant s was issued a warning letter by the CSRC due to improper audit procedures during t he audit o f Lian Tronics.This case reflects that there are high risks of financial fraud and audit behind the frequent high performance commitment M & A transactions of listed companies,and it has strong representativeness.First o f all,based on the theory of risk transmission,this paper first explores the path of risk transmission under Valuat io n Ad just ment Mechanism and the formation of audit risk in different stages of Va luat io n Adjust ment Mechanism,and points out that the audit risk of the enterprises with Valuat io n Adjust ment Mechanism is higher than that of the enterprises without Valuat io n Adjust ment Mechanism;secondly,taking Lian Tronics as an example,it expounds the development process of the case and analyzes the causes of financial fraud;thirdly,based on the modern risk oriented audit risk model,this paper analyzes in-depth the risk of major misstatement,inspection risk and audit risk in different stages of performance commitment under Valuat io n Adjust ment Mechanism o f Lian Tro nics;finally,combined with the case analysis of Lian Tro nics,based on the risk management theory,it proposes the audit risk response measures under Valuat io n Adjust ment Mechanism.The research content of this paper is helpful to improve the attention of accounting firms and certified public accountants to the audit risk under the specific situation of Valuat io n Adjust ment Mechanism,and it is expected to provide a certain reference for certified public accountants to reduce the audit risk and improve the audit quality under Va luat io n Ad just ment Mechanism.