Merger And Acquisition Audit Risks And Preventive Measures

In recent years,in the rapid development of China’s capital market,M&A has become one of the important ways for the rapid development and growth of the company under the current market economic situation,either using M&A to quickly carry out the diversified development of the company,or using backdoor to quickly achieve the purpose of listing the company.In the process of M&A,in order to reduce the business risks caused by M&A,enterprises often choose special organizations such as accounting firms to control various problems in the process of M&A,so as to help the company make more scientific and reasonable M&A decisions.However,due to the complexity and particularity of M&A transactions,M&A audit is very different from the traditional annual financial statement audit.Rigid application of the traditional financial statement audit model will lead to higher audit risks,Therefore,how to identify and evaluate M&A risks and deal with them effectively has become a major problem faced by accounting firms.On the basis of summarizing the relevant research on audit risk,M& A audit risk and M&A audit risk prevention measures,this thesis introduces the relevant concepts of M&A audit risk,and takes the information asymmetry theory,risk assessment theory and M&A motivation theory as the theoretical basis.Based on the theoretical foundation,this thesis selects the real case Ningbo Dongli merged Nianfu supply chain punished by the CSRC as the research object,systematically expounds the basic background and situation of both parties of the M &A transaction,as well as the main purpose and process of the M&A transaction,and selects the in-process stage of the M&A activity,The case study method and comparative analysis method are used to identify and analyze the M&A audit risk from the perspective of the origin of M&A audit risk.It is found that the audit risk points include the risk of material misstatement caused by income fraud and deliberate concealment of related party relationships and transactions in Nianfu supply chain,the inspection risk caused by accounting firms’ failure to properly analyze and investigate abnormal situations,and the improper valuation of Nianfu supply chain by asset evaluation institutions High performance commitment makes Nianfu supply chain take risks and wantonly financial fraud.In addition,the internal and external environment will also cause audit risks to a certain extent.Based on the analysis of the above M&A audit risk points,this thesis puts forward risk countermeasures.Theoretically,it helps to deepen the existing research results of M&A audit,and can also bring some reference significance to accounting firms in M&A audit.