Study On Yabaite Overseas Business Audit Risk

With the continuous advancement of economic globalization,many listed companies in China are expanding overseas markets,which raises higher request to Certified Public Accountant as economic supervisors.In auditing overseas business,auditors face higher risks due to unfamiliar foreign background,lack of experience and complicated overseas business.Through case study,this paper analyzes the risks that auditors may face with and the measures that should be taken when auditing overseas business.Jiangsu Yabaite Technology Co.,ltd.is the first company to be punished by Chinese regulators for cross-border fraud.The location of its fraud is Pakistan,an important country along the One Belt and One Road,so it is representative.The audit difficulties encountered in the process of Yabaite’s overseas business audit are common problems that may be encountered in all overseas business audit.This paper also analyzes the reasons for the improper audit opinion issued by Zhong Hua accounting firm,then posts some suggestions to reduce the audit risks from the two aspects of the accounting firm and the supervisor.This article mainly uses theoretical analysis method and case analysis method.First,I introduce the research background and research significance of this paper.Second,I summarize reference literature on audit risk at home and abroad,then analysis the case of Yabaite.The last,I suggest some measures of reducing the risk when audit business overseas and introduce the research conclusion.The conclusion drawn from the research is that the risk of overseas business audit is high,and needs to be reduced by implementing more targeted audit procedures.However,due to the lack of experience,time pressure and financial pressure,auditors may can’t implement sufficient quality audit procedures.In order to improve the quality of audit,auditors should maintain professional skepticism throughout the whole process of audit,and pay more attention to risk assessment in audit business acceptance stage,audit implementation process and the end of audit.Implement more targeted audit procedures in auditing overseas business,pay attention to field investigation,cash flow analysis,mine related parties,track logistics and comparative analysis of the same industry.And the accounting firms should carry out strict audit quality review procedures.Government have more ways and resources to know the foreign country’s political and economic and legal system.So,I suggest the government can establish more targeted overseas business audit procedure guidance,and help to improve the professional competence of Certified Public Accountants,hope my research can offer some references for auditors to audit the overseas business.