Research On The Audit Risk Of Y Company’s Overseas Business

As China’s economic development has entered a new normal,the national policies such as "One Belt And One Road" and "13th five-year plan" have laid a solid foundation for the development of domestic infrastructure.In response to the call of the state,more and more enterprises rely on the support of national policies and their own business advantages to accelerate the pace of overseas market expansion,and further improve the overall competitiveness of enterprises.However,due to the restrictions of laws and regulations,audit authority,language,customs and other aspects in the auditing of overseas business,certified public accountants are faced with higher and more complex auditing risks in the auditing process,resulting in the auditing supervision of enterprises’ overseas business generally lags behind the speed of enterprises’ overseas operation.As the first case of crossborder financial fraud penalized by the CSRC under the background of "One Belt And One Road" and the first small and medium-sized board company to be launched with compulsory delisting mechanism,company Y is regarded as a typical case to study audit risks of overseas business.Based on the audit risk and the overseas business audit risk related theory as the breakthrough point,will Y company as the core research object,mainly adopts the literature research and case analysis with the combination of research methods,using modern audit risk model,a heavier big mistake at two aspects of risk and check risk study specific faced in the process of the audit of certified public accountants audit risk,and on this basis,from the certified public accountants and public accounting firms,the audited units and the external environment three aspects to analyze the causes of audit risk,and audit risk management measures are put forward.According to the author of the study,it is necessary to implement more targeted audit procedures to effectively deal with audit risks of overseas business,and certified public accountants may not implement adequate and appropriate audit procedures due to lack of experience,time and capital pressure.In order to improve the quality of auditing,it is suggested that certified public accountants should maintain a professional skeptical attitude in the whole process of auditing,and pay attention to risk assessment in the process of undertaking audit business,audit implementation and audit completion.To implement more appropriate substantive procedures for overseas business,attach importance to audit procedures such as field visits,cash flow analysis,mining related parties and tracking logistics,as well as strict audit quality review procedures at the firm level.It is hoped that the study of this paper can provide some references for auditors to carry out overseas business audit.