On Audit Of Fraudulent Financial Reporting In NEEQ

In recent years,in order to promote the development of the real economy and consolidate the results of reforms,China has always been committed to promoting the construction of a multi-level capital market system.In order to provide a broader financing channel for small and medium-sized enterprises that have just started,to improve the possibility of high-tech enterprises obtaining sufficient funds in development,and to accelerate the establishment of a nationwide unified supervision of the OTC market,the New Third Board market came into being.But for now,while the NEEQ brings benefits to China's capital market,it also brings many hidden dangers.In particular,the new three-board market has more restrictions on investors and fewer restrictions on fundraisers.This has led to a limited number of investors in the market and limited investment funds.In order to compete for limited funds,companies are likely to beautify directly through financial fraud.Financial data,whitewashed financial statements,so quickly get the favor of investors,defrauding investment funds.The inadequate legal systems and regulatory mechanisms in the New Third Board market have also contributed to corporate financial fraud.In recent years,the frequent exposure of financial fraud cases such as Shenxianyuan,Yindu Media and Xinqiu Agriculture has further confirmed the increasingly fierce chaos in the New Third Board market.In order to maintain the stability of the new three-board market and protect the legitimate rights and interests of investors,accounting firms should play the role of external regulators to protect the legitimate rights and interests of investors.However,in recent years,accounting firms have not done their due diligence in corporate financial fraud.Many simple fraudulent methods have not been detected by auditors,resulting in the final audit opinion not in line with the real situation,which led to investors.Impaired interests and investment confidence have been hit hard.Continued will inevitably affect the development of the entire new three board market.In order to better protect the rights and interests of investors and promote the healthy development of the New Third Board market,accounting firms should maintain a high level of professional skepticism when auditing the new three board enterprises,paying attention to audit risk control issues,even the assets of the new three board enterprises.Smaller scale,less operating income,and never take it lightly,and still pay more attention to the areas with high risk of financial fraud.According to the market characteristics of the new three boards and the characteristics of the audited units,the audit procedures are designed in a targeted manner.The audit work was completed in good quality and quantity,and the real and reliable audit opinions were issued,and finally a fair and objective audit report was issued.This paper takes the case analysis as the research method,selects the case of the financial fraud of Shenxianyuan company as the analysis object,and through the relevant literature,collects and integrates relevant information and information,and makes reasonable information on the risk of the financial fraud audit risk of the New Third Board.Summarizing and summarizing,after thoroughly understanding the characteristics of the New Third Board,the characteristics of financial fraud in the New Third Board and the current situation of auditing in this market,the case was analyzed based on the fraud triangle theory,risk-oriented audit theory and asymmetric information theory,from the perspective of the auditing of accounting firms,including the risk analysis of material misstatements and the risk analysis of detection.Finally the accounting firm's response to the new three board audit market,in particular,should include strengthening the application of risk assessment procedures,paying attention to related party transactions,and paying attention to income fraud.It is hoped that the research in this paper will be able to promote the orderly development of the new three-board market to a certain extent.