Audit Risk Study Of Soil Exploration Company Under The Background Of International Oil Price Fluctuations

With the forward development of China’s economy,the market demand for petroleum resources is expanding day by day,and the state also attaches importance to and continuously promotes the development of petrochemical industry.However,in recent years,due to the spread of the epidemic and political conflicts,the international oil price has fluctuated greatly,which has brought certain business risks to China’s oil enterprises.As an important part of the audit supervision system,social audit needs to further play its role in the audit of petroleum enterprises,find out the problems existing in petroleum enterprises,and put forward suggestions for improvement to make them better deal with risks and achieve healthy and orderly development.However,petroleum enterprises have certain particularity,and it is inevitable that there will be some risks in the process of social audit,which will affect the quality of audit.Based on the risk-oriented audit theory,information asymmetry theory and resource allocation theory,this paper takes S Petroleum Company as the object to analyze the audit risks generated by social audit in the process of petroleum enterprise audit,and puts forward the corresponding preventive measures.Firstly,the overall situation of the case is introduced,mainly including the current situation of the international crude oil market,the basic information of S Oil Company and the basic information of Z accounting firm that undertakes the audit business.Secondly,it analyzes the risks and their causes existing in the audit process of S Oil Company,including the external environment,continuing operation,internal control,related party transactions and other material misstatement risks and their causes existing in S Oil Company.As well as the inspection risks and their causes existing in the audit process,such as the lack of on-site audit,language and culture differences,the difficulty of obtaining audit evidence,and the improper implementation of audit procedures.Finally,the corresponding preventive measures are put forward for the above analyzed audit risks: first,in response to the risk of material misstatement at the level of financial statements,it is necessary to reasonably evaluate the enterprise’s ability to continue operations,increase the understanding of the enterprise’s external environment,and improve the attention to the enterprise’s internal control and related party transactions;Second,we should attach importance to the audit of oil and gas properties,strengthen the audit of operating income,and confirm the rationality of asset impairment in dealing with the risk of material misstatement at the identification level;Third,in terms of dealing with inspection risks,accounting firms should control the quality of audit projects,improve the degree of audit informatization,and auditors should cultivate their ability of cross-border business and gradually improve the audit procedures.At present,the domestic research on the audit risk of oil enterprises mainly focuses on internal audit,while the related fields of social audit are rarely involved.This paper will study the social audit risk of S Oil Company from this new research perspective,which can promote the development and improvement of relevant theories on audit risk in the petroleum industry.At the same time,S Oil Company has a large scale of operation and is relatively representative in the industry,so the research results of this paper have certain practical significance for other similar enterprises.