Research On The Revenue Audit Risks Of Online Game Enterprise

In recent years,under the background of "Internet +",people’s requirements for the quality of entertainment life are increasing day by day,the development speed of Internet game companies is growing rapidly around the world,the operation model is becoming more and more mature,and the market scale is constantly expanding.In 2020,under the impact of the COVID-19,the "home economy" stimulated the development of game industry,which greatly attracted the attention of investors.However,given that the revenue of Internet game enterprises is mainly generated through the "microtransactions" of selling game virtual goods and services,how to rationally apply the accounting principles has become a major problem in their accounting treatment.At the same time,revenue,as an important indicator that affects the accuracy of financial statements,is often listed as a key matter in the auditing reports.Revenue auditing also faces more complex and diversified audit risks.Therefore,the paper uses case study method,and on the basis of systematically summarizing the general situation of the Internet game industry,taking Ourplam company,the first game company listed on China’s A-share GEM,as an example,to analyze the revenue audit risks,and put forward risk prevention countermeasures in a targeted manner.Based on modern risk-oriented auditing theory,combined with the current revenue recognition methods of Internet game enterprises,this paper summarizes the revenue audit risks faced by Ourpalm company from the perspectives of material misstatement risk and inspection risk.The research found:(1)The major misstatement risks of game enterprises’ revenue mainly include the mixture of gross method and net method,the fuzzy timing of revenue recognition,the uncertainty of the fair value of virtual goods,the possibility of precipitating virtual currency for earnings management,the risks in the security of information systems.The inspection risks mainly include that auditors do not have knowledge about information system auditing,traditional auditing methods are not applicable and the oversea distribution of games increases the difficulty of verification.(2)In view of the above audit risks,this paper proposes methods to improve the revenue audit of Internet game enterprises from the perspective of auditors,including judging the responsibility role of game enterprises based on contracts;reviewing and verifying the timing of revenue recognition from virtual goods;calculating the fair value of virtual goods;judging the appropriateness of the accounting treatment of precipitated virtual currency;strengthening the testing of information systems to identify material misstatement risks.Auditors can also reduce inspection risks by improving the professional competence,optimizing substantive procedures,and promoting audit transformation in the context of "Internet +".Combining theory with practice,this paper enriches the theoretical research on audit risks in emerging industries such as Internet game enterprises.The practical suggestions put forward also have certain reference value for preventing audit failure cases in this industry.It is hoped that the paper is conducive to improving the quality of revenue auditing in the game industry,building a good market governance environment,and better protecting the interests of investors.