A Study On The Audit Risk Of New OTC Market

The national SME stock transfer system(commonly known as the " New OTC Market ")has played an important role in serving small and micro enterprises and the private economy since its establishment in 2013.On the one hand,it has broadened the financing channels for SMEs and standardized the formation of innovative venture capital.On the other hand,it plays an important connecting role in China's multi-level capital market.However,due to the easing of entry barriers and supervision of the NEEQ,the entire NEEQ market faces relatively high overall risks.Especially in recent years,many accounting firms with securities qualifications have taken the NEEQ audit business as an important development point for their own business development.The contradiction between the rapid expansion of their business and their professional capabilities has become increasingly prominent.At present,the main research directions of scholars at home and abroad are in the main board audit business,and the new third board audit has not been given sufficient attention,so the research questions in this article are:How to identify and respond to the audit risks of NEEQ listed companies and provide reliable company information for investors from all sides has become an urgent issue.This article combines the research results of modern risk-oriented theory,and based on the existing research,with the help of literature research and case analysis,from the perspective of a third party,this paper starts with the overall market characteristics of the New Third Board Market.Responsibilities and risks that third-board companies should bear in auditing business.And put forward corresponding solutions.The case introduced in this article is the audit of Shandong Xinlv Food Co.,Ltd.by Beijing Xinghua Certified Public Accountants.The company has a large amount of fraud,a variety of fraud methods and clear subjectivity.Therefore,the company's major misstatement risks and identification level risks are specifically studied.The practice problems of He and CPA firms have important reference significance for the healthy development of the NEEQ audit business.This study found that the main reasons for the failure of the NEEQ audit include:(1)serious homogeneity of accounting firms,unduly diligence due to low-price competition,and the flow of audit procedures on the surface;(2)the company 's own incentives for counterfeiting,and the performance of gambling agreements It is required to be aware of fraud at all costs and intentions.(3)Auditing inherent limitations due to industry characteristics.The agricultural product processing industry has always been a high-incidence area for audit failures.(4)External regulatory policies and efforts are not in place and lower violations.The temptation of cost and high amount of benefits has,to a certain extent,prompted relevant units to take risks.On this basis,corresponding countermeasures are proposed,and we hope to provide some help for the audit business of the NEEQ listed companies.