Research On Audit Risk From The Perspective Of Equity Disputes

In recent years,with the rapid development of China’s capital market,the relevant laws and systems are not perfect,the company’s own management organization structure is unreasonable,and the escalation of conflicts among shareholders leads to the emergence of equity disputes,which has attracted wide attention from all walks of life.At the same time,equity disputes have a serious impact on the company,such as internal governance and disorder,abnormal operation,and so on,which leads to an increase in audit risk.Faced with the high audit risk of equity disputes,many accounting firms’ audit business did not achieve the expected results.The CICPA also sent a letter asking accounting firms to pay attention to the adverse effects of equity disputes and attach great importance to their audit risks.There is an urgent need for more and better experience in theory and practice on how to complete audit business with high quality.Therefore,this paper takes ST Reclaim as an example to study the audit risk from the perspective of equity disputes.First of all,on the basis of summarizing the related literature on equity disputes and audit risks,the theoretical analysis framework of this paper is constructed by using the basic theories such as modern risk-oriented audit theory and conflict theory.Secondly,it analyzes the impact of equity disputes on audit risk and the reasons for the impact.On the theoretical level,this paper studies the audit risk assessment under equity disputes.Thirdly,it puts forward the audit risk response at the level of financial statements and certification for certified public accountants,and puts forward countermeasures for audit institutions.Finally,taking ST Reclaim as an example,this paper proves the above theoretical research.This paper draws the following conclusions: First,the occurrence of equity disputes will lead to an increase in the risk of material misstatement,and in order to control the audit risk within a reasonable range,the acceptable inspection risk will be reduced;Second,in the face of audit risk under equity disputes,auditors need to perform major misstatement risk assessment procedures at the level of statements and identification,such as reviewing equity structure and paying attention to related party transactions;Third,in the face of audit risk under equity disputes,auditors need to implement inspection risk response procedures at the report level and the cognizance level,such as paying attention to communication with audited companies,auditing receivables and payables in related party transactions.The innovations of this paper are as follows: It studies the audit risk from the perspective of equity disputes and takes the characteristics of equity disputes as the starting point of the study,which enriches the relevant theoretical research on audit risk and provides reference for the relevant audit work of equity disputes companies.