Research On The M&A Audit Risks Of Listed Companies And Its Countermeasures

Under the impact of the cut overcapacity and supply-side reform policies in our country,the regulators encouraged the development of M&A and reorganization and greatly simplified the administrative procedures,providing a good environment for mergers and acquisitions.We can expect that the M&A in China will continue to be hot.As professional intermediary service institutions,the accounting firms have ushered in a new development opportunity.But with the policy regulation became tighter and tighter,the scandal of unsuccessful,fraud and false M&A are often revealed,making CPAs facing huge risks in M&A auditing.How to control and respond to the audit risks of the mergers and acquisitions is particularly important.M&A audit is different from the financial statements auditing.The aim and scope of M&A audit were developed and extended.Generalized M&A audit is deep into the whole process of M&A including the planning and integration.The extent of audit put forward higher requirements for the CPAs.In addition,the complexity of M&A auditing makes the CPAs face great risks.How to identify and evaluate the risks and how to deal with the M&A audit risks are the key issues of my dissertation.Based on the modern risks-oriented auditing,this dissertation will identify and evaluate the M&A audit risks from four aspects.Firstly,I analyzed the M&A audit risks led by the financial statements,including the risks caused by the complicated M&A environment and alienated M&A motives.Secondly,I analyzed the inherent risks brought by the complex accounting treatment and the value evaluation related to the M&A transaction,and the third is the control risk related to the internal control before and after the merger.Finally,I analyzed the inspection risks caused by the CPA's own reasons,including the threat of multi-party game to independence and the gaps of the professional competence.Considering the overall process of the planning,implementation and integration of the M&A transaction and based on the M&A theory and audit risk theory,I analyzed the material misstatement risks and check risks of the M&A audit risks in the third chapter and then put forward the coping strategies of M&A audit risks in the fourth chapter I put forward the corresponding strategies of the M&A audit risks,including prudently choosing the acquisition target,strengthening the due diligence,improving the independence and professional competence of the auditor,and perfecting the relevant laws and regulations of M&A and reorganization.Finally,I focused on a specific M&A audit case,which happened when FJJS took over LCLH,and analyzed the M&A audit risks faced by the L accounting firm in detail,and put forward the corresponding coping suggestions on the risks.