Research On Audit Risk Control Of Successive Firms After The Change Of Accounting Firms

In recent years,there have been frequent cases in which the accounting firms have been punished in the capital market.With the development of the social economy,the economic environment faced by accounting firms has become more and more complex,and the audit risks have gradually increased.In order to standardize the industry order of accounting firms,in April 2003,the Chinese Institute of Certified Public Accountants(hereinafter referred to as the CICPA)highlighted the risks associated with the changes in accounting affairs and the impact on audit quality.After the change of the accounting firm,the successor CPA should maintain sufficient professional suspicion,and the listed company will take the initiative to change the bad behavior of the accounting firm as a key point for the CPA auditing industry to conduct self-regulation,so as to achieve the improvement of industry competition.The purpose of order.How to regulate the behavior of abnormally changing accounting firms and effectively control auditing risks has become one of the hot issues of concern in the practical and theoretical circles.The audit risk is objective,and the various reasons constitute the formation factors of the audit risk.The internal audit relationship and the actual economic environment are inseparable.This paper firstly summarizes the literature on the change of accounting firms at home and abroad and the risk of auditing,and draws on the identification and response of the auditing risk of the successor accounting firm when accepting new clients after the domestic and foreign scholars have changed the accounting firm of the listed company.Measures and related audit risk research theories and results,analyze the motivations,economic consequences and risk identification of changed accounting firms,and use information asymmetry theory,audit risk management theory and prisoner dilemma theory as the theory.Based on the in-depth discussion on the audit risk identification and control of the accounting firm after the change of the accounting firm,the corresponding risk identification framework is formed,and the identification of key audit risk factors is used to changethe accounting firm.After the audit risk identification and assessment,and finally put forward corresponding risk response measures.The case used in this paper is Ruihua Certified Public Accountants Audit Kunming Machine Tool Co.,Ltd.In 2015,the auditing organization of Kunming Machine Tool was changed from KPMG Huazhen to Ruihua Certified Public Accountants.In 2016,Kunming Machine Tool exposed financial fraud,involving 2013-2016.In the past,Ruihua Certified Public Accountants issued a standard unqualified audit opinion on the financial statements of Kunming Machine Tool in 2015.This paper applies the risk identification framework established in Chapter 4 to identify and evaluate the audit risk faced by the successor accounting firm after the Kunming Machine Tool Company changes its accounting firm,and finally proposes corresponding countermeasures for risk control.According to the analysis of relevant theories and cases,after the change of the accounting firm,compared with the continuous audit,it often faces higher audit risk.The successor accounting firm should maintain a high degree of vigilance and carefully select customers.The research findings in this paper are as follows:(1)The accounting firm withdraws from the auditing agreement and changes it.Compared with the changes caused by the initiative change or irresistible factors of the listed company,the audit risk of the successor firm is higher;(2)the accounting firm proposes to change,It often indicates a higher risk of management fraud,and the successor accounting firm should focus on management integrity issues;(3)Kunming Machine Tool Company exhibits high audit risk after the change of accounting firm,and the successor accounting firm should carefully consider Whether to undertake business.Audit risk control not only requires the continuous improvement of the professional competence of the CPA itself,but also requires the accounting firm to strengthen its risk awareness,strengthen risk management,and promote the construction of a good practice environment.