On Audit Risk Control Of E-commerce Annual Report

With the rapid development of Internet and network technology,e-commerce has gradually become a leading industry in the 21 st century,which has played a positive role in deepening reform,accelerating the overall opening up,and promoting innovation and entrepreneurship.But at the same time,the annual report audit risk of e-commerce enterprises is becoming more and more difficult to control,which poses unprecedented severe challenges to accounting firms.It is urgent to seek breakthroughs in the construction of relevant laws and regulations,relevant audit standards,technology and methods,and related audit theory.However,at present,most domestic and foreign literatures study the audit risk of ecommerce and its prevention from the perspective of external supervision and audited units,while there are few studies on the audit risk of annual reports of e-commerce enterprises and its prevention from the perspective of accounting firms and certified public accountants.Therefore,the case study based on the audit perspective of accounting firms’ annual report of e-commerce enterprises,that is,to study how to deal with the typical case study of ecommerce annual report audit from the perspective of CPA,is one of the research directions that need to be filled in in the future.This paper adopts the case study method to carry out the research,the full text is divided into six parts.The first part mainly introduces the research background and significance of the topic,summarizes the relevant literature at home and abroad,and combs the main research framework and methods of this paper.The second part mainly discusses the development of e-commerce and its business characteristics,the audit risk model of annual report of ecommerce enterprises and the impact of e-commerce environment on the audit risk of annual report.The third part mainly analyses the identification mechanism of major misstatement risk and inspection risk of the audit project of Suning Easy Buy Annual Report of PricewaterhouseCoopers and the risk control measures of annual report audit.The fourth part discusses and analyses the effect and problems of risk management and control of the audit project of PwC’s annual report on electronic commerce.The fifth part puts forward suggestions on how to improve the audit risk control of the annual report of E-commerce by PricewaterhouseCoopers.The sixth part is the summary of the research and the prospect of the follow-up research.This paper finds that the main risk points or control deficiencies of PwC in the audit of annual reports of e-commerce enterprises are: the difficulty of obtaining evidence for the security and reliability of information systems;the inefficiency of processing and analyzing electronic data;the complexity and diversity of audit evidence;the difficulty of electronic payment and signature auditing;the fragmentation of customers and the difficulty of verification.And so on.The main reasons for the above shortcomings are: poor external environment;diversification and complexity of audit objectives and scope;inadequate professional competence of firms and their personnel;inadequate advanced audit techniques and methods;and other reasons such as audit procedures,audit reports and internal control of the auditees themselves.In view of the above shortcomings and problems,this paper argues that the following aspects should be improved: first,to improve the relevant environment,including paying attention to the changes in the external environment of ecommerce enterprises and improving the internal environment of the firm industry;second,to optimize the risk response of the audit process,including paying full attention to the risk assessment of e-commerce audit projects,focusing on the review of information systems and developing the evaluation mechanism of electronic evidence.Thirdly,strengthen the risk control mechanism of firms,including strengthening the training of auditors,improving audit software and technical methods,establishing risk-oriented cloud audit model and integrating RPA and AI technology in audit.The main innovations or contributions of this study are as follows: Firstly,change the past research on the audit of annual report of e-commerce from the perspective of regulatory authorities or audited enterprises.This paper explores the risk and control of audit of annual report of e-commerce from the perspective of certified public accountants,and adjusts the research perspective to a certain extent,which is conducive to the refinement,supplement and expansion of related audit issues;Based on the modern audit risk and its control theory,this paper analyses the specific cases of the audit risk control of the annual report of e-commerce enterprises,and puts forward a series of improvement measures and suggestions on its audit risk management and control mode,technology and methods and popularization value.