Research On Audit Risk Of Zhangqu Technology Under The New Income Standard

With the social and economic development,people’s lives have become increasingly rich,online games have gradually become a new choice for people’s entertainment,online game companies have been developed rapidly,and concerns have been raised about the audit of online game companies and the problems in the audit.In order to adapt to the development of China’s economic situation,the Ministry of Finance made adjustments to the revenue standard in 2017.The new revenue standard has further regulated the recognition and measurement in revenue,and the online game industry,as an industry that is greatly affected by the standard,has attracted many scholars to study the accounting treatment related to its revenue.The new revenue standard has also led to significant changes in the audit content of online gaming enterprises,bringing new audit risk points and new tests of audit quality.Most online gaming companies have chosen to start adopting the new revenue standard in 2020,and the impact of the new revenue standard on the audit risk aspects of online gaming companies is still in the exploration stage.So what impact will the new revenue standard have on the audit risk of online gaming companies? In this thesis,the potential audit risk of online game companies under the new income standard is studied,and the audit quality of online game companies can be improved by providing some theoretical reference and practical guidance.This thesis adopts the literature research method and case study method to study the audit risk of online game enterprises under the new income standard.Firstly,the research background and research significance of this thesis are introduced,and the relevant literature is sorted out and summarised.Secondly,the theoretical basis and institutional background of the research problem are collated.Then,based on the modern riskbased audit theory,an in-depth analysis of the possible audit risks under the new revenue standard is conducted,taking the online game enterprise PDA as a case study,and the possible fraud risks in the processing of corporate financial data under the new revenue standard and the possible negative impact of the new revenue standard on audit quality are discussed respectively,and the causes of audit risks are further analysed.Finally,based on the above analysis,suggestions on how to deal with the audit risks of online game enterprises under the new revenue standard are put forward.This thesis concludes the following from the study:(1)The new revenue standard makes the revenue recognition of online game enterprises more standardized.Taking PDA as an example,the implementation of the new revenue standard has made the treatment of various types of virtual props of online game enterprises more standardized.(2)The new revenue standard poses certain risks of revenue fraud.As the new revenue standard has autonomy in the treatment of revenue and lacks specific industry-compliant application guidance,it poses audit risk on revenue.Auditors should pay attention to the matching relationship between revenue and costs.(3)There are audit risks associated with the transition to the new revenue standard.The analysis of this thesis found that PDA’s handling of the convergence of the new revenue standards lacked a certain degree of reasonableness,and should strengthen the attention to the convergence and implementation of the new revenue standards.(4)The lack of industry-specific application guidance and information disclosure is an important reason affecting the audit risk of enterprises under the new revenue standard.The lack of information disclosure related to the revenue standard makes it difficult for outsiders to make judgments on the true revenue treatment of enterprises,increasing the risk of corporate fraud.(5)Higher requirements for auditors’ professional competence and audit procedures under the new revenue standard.This thesis argues that the audit procedures and audit methods adopted by auditors under the new income standard need to be further improved,and that auditors should enhance their own quality,raise their awareness of audit risks and strengthen information system audits.