Study On Stock Exchange Inquiry Letters And Audit Risk

China's Shanghai and Shenzhen stock exchanges by issuing inquiry letters to strengthen the supervision of information disclosure of listed companies,with a view to identifying the possible risk of listed companies.Since 2014,the two exchanges have publicly disclosed the inquiry letters on their official websites.The risk-oriented audit model requires auditors to focus on risk.What audit risk might be prompted by stock exchange inquiry letters? How can auditors use inquiry letters to identify and assess audit risk for listed companies? What can auditors do about it? It becomes a theoretical and practical problem worth studying.First of all,this paper uses the normative research method to comb the relevant research literature of domestic and foreign scholars on inquiry letters and audit risk,points out the theoretical basis of this paper at the same time.By elaborating the inquiry letter and current situation,the aim is to clearly define and classify the stock exchange inquiry letter in this paper.Secondly,it is theoretical analysis,which constructs the theoretical framework of this paper.Further use the normative research method to analyze the impact of the stock exchange inquiry letters on audit risk assessment,to expound the basic idea of using the stock exchange inquiry letters in audit risk assessment.Finally,combined with the method of content analysis and case study,with KDX as a case to explain the specific use of the stock exchange inquiry letters in the audit.Understand the basic situation of the stock exchange's inquiry letters and the reply of KDX,summarize the inquiry and reply content by using the method of content analysis,elaborate on the use of the exchange inquiry letter to identify and assess the audit risk of KDX,and propose measures that can be taken for the case.Combined with theory and case study,this paper draws the following conclusions: stock exchange inquiry letters can indicate the possible audit risk of listed companies through inquiry questions,these inquiry letters are rich in information and can be used as an important source of information for auditors' risk assessment,auditors can use stock exchange inquiry letters to identify and assess audit risk and judge high-risk areas,they can also use the reply content of inquiryletters to further identify and assess audit risk.And the reliability of the reply content is also one of the main contents that the auditor needs to verify.The contribution of this paper is to link the stock exchange inquiry letters with the audit risk,which not only enriches the research in the two fields,but also provides new ideas for the auditor to identify and assess the audit risk of listed companies.