The Research On Auditing Risk Caused By High Premium M＆A ——A Case Study Of Jiawei Energy

With the development of the capital market,more and more enterprises integrate resources through M＆A,the amount of M＆A activities becomes bigger,and high premium M＆A occurs frequently.However,after the completion of M＆A,some enterprises did not achieve the expected rapid development,especially M＆A involving performance commitment.After the end of the performance commitment period,there were frequent "performance changes".The synergy generated by M＆A can not match the high premium paid by M＆A,and the market,enterprises and investors have been adversely affected.As the high premium M＆A is the key focus in the audit,and there are many audit hidden dangers caused by the huge goodwill generated by the high premium M＆A,while there are few targeted audit risk prevention and response measures,this paper selects the case of Jiawei Renewable Energy Co.,Ltd.’s M＆A of Jiangsu Huayuan New Energy Technology Co.,Ltd.with multiple representative risk points for analysis and discussion,It provides some help for the audit staff on how to identify,evaluate and deal with the risk of material misstatement in dealing with the audit of such complex customers.This paper is a case analysis paper.Firstly,by consulting the relevant studies on high premium M＆A,goodwill impairment,audit risk and their correlation at home and abroad,find out the breakthrough of the research;Secondly,for premium M＆A,sort out CAS on relevant audit work,combined with fraud triangle theory,synergy theory and information asymmetry theory,and according to risk-oriented audit theory,provide an applicable theoretical basis and construct an analytical framework for this paper from two levels of material misstatement risk;Thirdly,taking Jiawei Renewable Energy Co.,Ltd.as an example,through taking the whole process of M＆A into consideration,from the motivation of M＆A,the influencing factors causing the high premium of the subject matter and its consequences,based on the research framework,this paper analyzes the audit risk of Jiawei Renewable Energy Co.,Ltd.in the whole process and its subsequent impact,and puts forward corresponding risk prevention suggestions;Finally,the following conclusions are drawn: multiple risk points in enterprise high premium M＆A make external auditors face a high level of major misstatement risk,and the audit risk caused by high premium M＆A based on bad motivation exists for a long time and crosses through the whole process of M＆A.high premium M＆A may be a tool for large shareholders to transfer benefits,which is beneficial to certified public accountants,minority shareholders Other investors even have an adverse impact on the market.The innovation of this paper is reflected in the innovation of research perspective and research content.This paper regards high premium M＆A as the key reason for audit risk of the company in which M＆A is happening or has happened;Different from the previous audit risk research that only focuses on goodwill impairment,this paper integrates the audit risk in the whole process of high premium M＆A from motivation to subsequent impact.