Research On Corporate M&A Audit Risk And Prevention And Control

Over the years,with the rapidly developing capital market,mergers and acquisitions have become one of the important ways for enterprises to grow,either using mergers and acquisitions to quickly achieve diversified development,or using backdoors to quickly achieve the purpose of listing.Although the number of domestic mergers and acquisitions has declined since the 2017 merger climax,it still maintains an overall stable trend.In the process of enterprise mergers and acquisitions,in order to reduce the risks brought by mergers and acquisitions,companies usually employ professional agencies such as accounting firms to control various problems encountered in the merger and acquisition process,so that enterprises can obtain complete,objective and true information,to provide more professional advice to enterprises,so that enterprises can make better decisions.However,due to the complexity and specialty of M&A activities,M&A audits are different from general financial statement audits.At present,M&A audit risks have even risen to the same risk level as IPO audits.Therefore,accounting firms have suffered in the process of undertaking M&A audit business.Higher risks,how to identify this risk and effectively deal with it has become an important issue that accounting firms need to face.This article positions the research perspective on M&A audit risk,combines the literature research method and the case study method,and conducts theoretical analysis and case studies on M&A audit risk.On the basis of combing the relevant research results of audit risk,M&A audit risk,and M&A audit risk prevention and control,it introduces the related theories of M&A audit risk,taking information asymmetry theory,principal-agent theory and M&A motivation theory as M&A audit risk The research laid the theoretical foundation.As the audit services provided by the firm to the firm become more and more demanding with the frequent occurrence of merger and acquisition transactions,the firm hopes that the firm will be able to control its risks from the overall process,rather than just reviewing a single unit during the M&A process.Financial statements and asset evaluation reports are used to determine transaction prices,so according to the guidance of modern risk-oriented audits,M&A audit risks are divided into M&A major misstatement risks and inspection risks.However,among the major misstatement risks,they are divided into three parts according to the M&A transaction process,which are the major misstatement risk in the preparation stage,the major misstatement risk in the implementation stage,and the major misstatement risk in the integration stage.The risk of major misreporting risk and the risk of CPA inspection are specifically analyzed,and corresponding risk prevention and control measures are given Finally,taking the real case punished by the China Securities Regulatory Commission,the Guangdong Guangzhou Daily Media Co.,Ltd.M&A Advision Media case as an example,the analysis of the M&A audit risks reflected in specific cases and their prevention and control are theoretically helpful to deepen the existing M&A audit research As a result,it also provides a certain reference for certified public accountants in M&A audit practiceThe research history of M&A audit risk in China is not long,and the related theories and systems are still being developed,so it is not very mature and complete.Therefore,this article positions the research perspective on M&A audit risk,emphasizes the high degree of participation of CPAs in the whole process of M&A audit,analyzes M&A audit risk from objective M&A major misstatement risk and auditor's subjective inspection risk,and proposes targeted Corresponding measures.I hope to enrich the existing research results to a certain extent and provide analysis and prevention ideas for auditing practice.