Research On The Revenue Audit Of Online Game Companies

The rapid development of Internet technology has also led to the development of the pan-entertainment industry.The emergence of mobile terminals has provided a carrier for cultural content.In this context,online game companies have also become an important force in the capital market,and the speed of the spread of games,Audience,popularity,etc.have repeatedly reached historical highs.As part of the cultural industry,online game companies’ revenues are represented by the sales and transactions of virtual currency and virtual goods.They are very different from traditional industries in terms of revenue recognition and measurement.In terms of revenue recognition,the revenue of online game companies is recognized The time depends on the nature of the items sold.For instant items,the income is usually confirmed at the point when the player purchases them;for permanent items,the income is usually divided according to different life cycle models.For the life cycle model,online game companies usually choose one of the user life cycle model,the item life cycle model,and the game life cycle model,and the model is designed by the online game company.In terms of revenue measurement,online game companies have two different revenue measurement methods based on the company’s operating models,such as independent operating models,joint operating models,and authorized operating models.In this context,online game companies have income risk characteristics such as inconsistent revenue recognition and measurement methods,high risk of data fraud due to a small amount of single revenue,and highly informationized operations.This also creates corresponding revenue audit difficulties.,Including that due to the relatively vague standards for the calculation of the performance progress of the standard,it is difficult for the certified public accountant to judge whether the income recognition and measurement are in compliance;the audited entity uses self-recharge and other methods to increase the income and it is difficult to be detected;the information characteristics have a great impact on the IT skills of the certified public accountant.Put forward higher requirements and so on.In addition,in the audit reports of listed game companies,accounting firms all disclose revenue risk as a key audit matter.For game companies that are IPO,the China Securities Regulatory Commission also regards revenue as a key concern and requires companies to disclose reports.Therefore,from the perspective of a CPA,this article takes as a research question what audit procedures should be implemented by certified public accountants to reduce the risk of major misreporting of the revenue of online game companies based on the characteristics of the income risks of game companies.This article uses the case analysis method,based on the collection and combing of previous studies,summarizes the current research on the income and income audit of online game companies,and selects representative online game companies as a case for analysis,and finally draws the conclusion: In terms of overall coping strategies,CPAs can make judgments by understanding and testing the internal control related to income,analyzing the changing trend of game operation data,and calculating the correlation between indicators.In terms of specific countermeasures,for revenue recognition,CPAs can judge whether the company is in compliance with the standards by whether the company continues to transfer control;for revenue measurement,CPAs can judge by analyzing the operating mode and the definition of input method and output method.Compliance with the standards,recalculation of the channel fee and handling fee ratio,compliance with the contract terms to identify the risk of data fraud,use IT audits to determine the effectiveness of the information system and the correctness of electronic data,calculate the confidence interval and other methods to deal with the income risk.Finally,this article draws some enlightenments and suggestions through case analysis to improve the CPA’s ability to identify and respond to the revenue audit risks of online game companies.