Research On Causes And Countermeasures Of Audit Risks Of Z Accounting Firm To KM Pharmaceutical Corporation

For a long time,the pharmaceutical industry has played an extremely important role in the national economy of our country and is one of the important pillars of the national economy.At the fifth plenary session of the 18 th central committee of the communist party of China(CPC),the 13 th five-year plan(2016-2020),adopted at the meeting,established a "healthy China" as a national strategy,raising traditional Chinese medicine to an unprecedented level.In addition,with the development of economy and society and the continuous improvement of residents' living standard,people have a higher pursuit of "healthy life”.In recent years,however,as countries have adopted a series of macro-control measures to reduce drug prices,medical industry affected by a certain policy,some medicine in order to meet the expectations of many investors of listed companies,to whitewash the enterprise financial reporting,concealing the internal financial information,eventually making the enterprise accounting information disclosure quality,as the capital market "gatekeeper",certified public accountants face the potential risk of material misstatement of financial statements,pharmaceutical enterprise is increasing.First of all,this paper adopts the literature research method to summarize and sort out the main viewpoints put forward by many experts and scholars at home and abroad on audit risk,and then makes a summary and evaluation on them.Secondly,it introduces the relevant concepts and theoretical basis of audit risk,and summarizes the main characteristics and audit risks of pharmaceutical enterprises.Thirdly,the company background,business structure,internal control,equity relationship and audit institution of KM pharmaceutical corporation are introduced,and the material misstatement risks and inspection risks of KM pharmaceutical corporation are analyzed based on the risk-oriented audit model.Among them,the risk of material misstatement includes operational risk,financial risk,income misstatement risk,capital misstatement risk and related transaction disclosure risk.The risk of inspection includes the risk of improper audit opinions,the risk of ignoring internal control defects and the risk of excessive reliance on previous audit experience.Then,the causes of the audit risk of KM pharmaceutical corporation were explored from the perspectives of the risk of serious mistake and the risk of inspection.Among them,the genetic material misstatement risk financing tactics include industry environment change,radical,revenue recognition is complex,the imperfection of the capital management,and liable to collude and commit fraud among related parties,check risk causes including auditors failed to maintain independence and professional competence,improper audit program and audit quality control specification.Finally,in view of the causes of audit risks of KM pharmaceutical corporation,countermeasures are proposed to reduce audit risks and improve audit quality.