A Study On The Audit Risk Of New OTC(Over The Counter) Market

From December 2013,the New OTC Market officially began to receive listing applications from enterprises across the country,so many small and medium-sized enterprises can meet the needs of external financing;In 2016,in order to support the development of small and medium-sized enterprises on the New OTC Market,the state further implemented new policies to promote the market reform of the New OTC Market.Compared with more than 300 enterprises that were initially listed in 2013,the total number of listed enterprises in China's New OTC Market has reached 11,075(the latest data as of August 2018).The rapid development of the New OTC Market has promoted the continuous development and growth of small and medium-sized enterprises and China's multi-level capital market.However,due to the relatively low entry threshold of New OTC Market enterprises compared with the main board and small and medium-sized board,the imperfect regulatory environment and the imperfect financial system of enterprises,the rapid development of New OTC Market enterprises also brings many disadvantages,and the New OTC Market enterprises are frequently punished for violations.In the process of auditing New OTC Market enterprises,accounting firms have great responsibilities.In the process of auditing,they should correctly execute the audit procedures,identify the audit risks,and find out the situations of fraud,which also face great risks.This paper puts the audit risks of New OTC Market listed enterprises into the audit risk model,and analyzes the major misstatement risks and the inspection risks faced by certified public accountants respectively from the perspective of enterprises and accounting firms by using the financial violation case of Xinqiu agriculture.Through the study found that:(1)compared with other listed companies,the New OTC Market listed companies audit should have the attention of unique Angle,(2)Xinqiu agricultural material misstatement risk mainly displays in the affiliated party transactions,ability to continue as a going concern,internal control and corporate governance risk and income of identified risks,such as accounts receivable recovery is difficult,the inspection of the public accounting firm risk mainly comes from the characteristics of their own capabilities,the New OTC Market certified public accountants and public accounting firms internal audit of quality management and control level.Finally,based on the audit risks found in the case,the special concerns and risk prevention measures for the audit of New OTC Market enterprises will be considered from the perspective of the two levels of material misstatement risk analyzed above.