Y Online Game Company Revenue Recognition Key Audit Matters Disclosure Research

Income determination is the key element of the daily production and management of online game companies,which directly maps the company’s operating conditions and development prospects.According to the audit report disclosed by China’s online game companies in 2020,all accountants identified revenue recognition as a key audit matter for the audited units.Because the income is a key indicator of the performance of the online game company,its management is likely to control the income for the realization of the company’s business goals;And because the online game company is different from the traditional enterprise,its revenue recognition process must rely on information technology system,its process is cumbersome,the number of customers and other characteristics,resulting in the online game company revenue recognition audit has become the focus and difficulty in the audit.Based on Y revenue recognition in the online game company audit report key audit matters as the research object,based on the principles,combining with the characteristics of online game industry,and industry in the top 50 of the network game enterprise revenue recognition issues as disclosed in the period of comparative analysis,to explore the accountants in the revenue recognition issues existing in the process of the implementation of disclosure.The research shows that the key audit matters disclosed by listed companies can enhance the transparency of accounting audit work,so as to bring some incremental information to investors,which further reflects the intrinsic value of audit reports for investors to make rational investment decisions.However,in the audit report of Y Online game Company,there are some problems,such as the inspecific description of the item section and insufficient reason argumentation.At the same time,it is found that there are some problems such as incomplete audit disclosure of online game revenue,missing audit disclosure of advertising revenue and audit results.If the company has false disclosure and other situations,accountants and their firms will face great audit responsibility,and even legal risks.In view of these problems existing in the disclosure process of key audit items in revenue recognition of Y online game company,this paper proposes corresponding countermeasures for improvement.It is hoped that the CPA can take into account the usefulness and readability of the disclosed information when disclosing the key audit items of the revenue recognition of online game companies,ensure the integrity and authenticity of incremental information disclosure,and further optimize the audit measures.Relevant departments can further refine guidelines and strengthen the external supervision of online game companies.