Research On Audit Risk Identification And Countermeasures Of Listed Manufacturing Companies

Manufacturing listed companies have always been China’s national pillar industries.In particular,some old manufacturing companies,mostly state-owned enterprises,have a high degree of trust in the minds of the people.Once a serious financial fraud occurs,they will seriously undermine people’s confidence.When the old home appliance company Changhong Corporation was exposed to financial fraud in the past few years,public opinion was awe-inspiring.In recent years,successive large-scale audit firms failed to audit the case,which also revealed that CPAs still have many deficiencies in responding to audit risks.Therefore,in the process of auditing listed companies in the manufacturing industry,each certified public accountant must make full use of his professional skills to more effectively review his financial statements and transactions,and to find out that there may be a maximum False behaviorThis article combines theoretical analysis with case studies and based on a detailed study of classical literature in detail the major misstatement risks that may exist in the auditing process of the manufacturing listed companies.It analyzes the financial statements in detail from the level of the financial statements and the identification level,including financial statements.The level of audit risk at the level includes,but is not limited to,management’s overriding of internal control or management’s risk due to performance pressure,while identified level’s major misstatement risks are mainly concentrated on sales revenue,inventory,fixed assets and employee compensation payable.At the same time,auditors cannot ignore the audit work of their subsidiaries and branches.Immediately afterwards,the firm responded to the identified risks and responded to the cases.From the initial business activities to the control tests to the substantive procedures,only high professional caution was required to carry out the audit work in accordance with the procedures stipulated in the auditing standards.With the assistance of professionals,audit risk can basically be controlled within an acceptable range.After reaching the above conclusions,the following paragraph used the case of Ruihua Certified Public Accountants for the audit of Kunming Machine Tool Co.,Ltd.in 2016 as an example to demonstrate that the inventory of the listed companies in manufacturing must be invented.Income,fixed assets,payroll and other subjects pay great attention to the implementation of appropriate audit procedures,but also careful audit of other risks,you can control the risk well,so as to avoid audit failure as much as possible for the registration Accountants contribute their share to better auditing of manufacturing listed companies.