On Audit Risk And Prevention Of Enterprise Merger And Acquisition

Since the reform and opening up,with the growing maturity of China's market economy and the continuous improvement of the property rights market,mergers and acquisitions have become one of the main ways for enterprises to expand their scale with their advantages of high efficiency and low cost.Since 1995,the transaction amount in the M&A market has increased significantly.Especially after the financial crisis in 2008,the M&A market of our country ushered in a wave,the amount and quantity of M&A transactions are very large,and the M&A transactions are becoming more frequent.Nevertheless,we can not ignore the many risks that mergers and acquisitions bring to enterprises as a high-risk activity.Therefore,how to identify and timely guard against various risks in enterprise mergers and acquisitions has become a very important task.More and more enterprises will seek the services provided by professional institutions such as accounting firms to identify and prevent risks in the process of mergers and acquisitions.The audit of enterprise merger and acquisition is a very complex work,which involves many factors hidden risks,so it is very difficult,which means that there are high risks in the audit of enterprise merger and acquisition and the auditors shoulder great audit responsibilities.In general financial statement auditing,modern auditing model guided by modern risk-oriented auditing standards has been widely used,and M&A auditing also has many similar characteristics,so it has a strong guiding role in the analysis of M&A auditing risk.Therefore,after studying the related literature of M&A audit,this paper also makes a specific elaboration on the related theories of M&A,audit risk and M&A audit,and then makes a specific analysis of the relevant industry background of M&A cases,including the status and characteristics of M&A in the industry.Next,according to the modern audit risk model,aiming at specific M&A cases,this paper identifies and evaluates the specific risks in M&A audit cases from the perspective of each component of the modern audit risk model,and puts forward some preventive measures accordingly,such as paying attention to the financial reconciliation and financial statements audit of M&A parties before M&A;standardizing the operation of M&A audit;paying attention to standardization of M&A audit operations;attaching importance to standardizing and supervising asset valuation audit work;attaching importance to the audit report of profit forecast;focus on the internal control system of both sides of M&A and the integration of internal control after M&A;establishing a professional team for M&A audit,training professional M&A auditors,etc.It is hoped that it can provide some guidance for auditors' practice,help auditors identify and minimize audit risks in M&A auditing,so as to avoid audit failure.To a certain extent,it can also help mergers and acquisitions enterprises to understand,identify and guard against mergers and acquisitions risks,achieve better integration of mergers and acquisitions enterprises,improve business efficiency,and avoid the risk of failure of mergers and acquisitions as far as possible.The history of M&A activities in China is not long,and the related theoretical research on audit risk of M&A is not mature and perfect,and there are still many unspecified problems in the practice of M&A auditing that need to be further investigated and discussed.Therefore,I hope that the research on M&A auditing in this paper can further improve the theory of M&A auditing in China,and some preventive measures put forward in this paper.It can guide auditors in future M&A auditing practice,and help M&A enterprises identify and guard against risks,so as to achieve M&A objectives and promote further development of enterprises.