Audit Risk Of Annual Report Related To VAM And Countermeasures

In M & A,the VAM of the target company is of great significance in protecting the rights and interests of the small and medium-sized investors,maintaining the fairness of transactions,curbing malicious manipulation and evaluating pricing.However,in recent years,the negative impact of earnings manipulation caused by VAM has aroused widespread concern in the theoretical and practical circles.Generally speaking,the quality of accounting information is decided by the company's management and the auditor,at the same time,the auditor should bear the audit responsibility.The companies involved in VAM have strong fraud motivation,so auditors will face greater audit risk.Therefore,it is of great theoretical and practical significance to explore how to identify and respond to the audit risk of annual report involving VAM.Based on the case of Jiuqi software's acquisition of Shanghai Yitong,this paper first expounds the specific performance of the annual report audit risk related to VAM from the perspective of three levels proposed by modern risk oriented audit theory under the background that CFIA calls on firms to pay attention to the audit risk of VAM projects.It further analyzes the motivation of the annual report audit risk related to VAM.The motivation analysis shows that the high VAM pressure causes the target company to have the motivation of accounting information distortion and forms the audit risk;when the management has the motivation of accounting information distortion and meets certain conditions,it will implement fraud;when the internal and external environment of the enterprise has certain limitations,it is audited Accounting unit fraud indirectly provides opportunities.Secondly,taking Jiuqi software M & A of Shanghai Mobile as an example,this paper analyzes the risks and deficiencies in the annual audit process from three dimensions: the risk of major misstatement at the financial statement level,the risk of major misstatement at the recognition level,and the risk of inspection.Finally,from the financial statement level of the risk of major misstatement,this paper identify the level of risk of major misstatement,inspection risk to propose countermeasures.This paper focuses on the audit risk caused by the target company's VAM when the listed company merges the target company.Theoretically,it reveals the source and representation of audit risk under VAM,and expands the research scope of audit risk.In practice,it is beneficial for auditors to identify and respond to audit risks related to VAM,and also provides case evidence for regulatory authorities to supervise VAM.