Study On Audit Risk And Prevention Of Internet Video Enterprises

The Internet is the trend of The Times.By the end of 2022,China’s Internet penetration rate has reached 75.6%,and the number of users has reached 1.067 billion.In the past decade,the huge number of Internet users has enabled the rapid development of Internet-related industries,among which the Internet video industry,as the fifth category of the Internet industry,has also made leapfrog progress.With the vigorous development of the Internet video industry,the competition among video enterprises is becoming increasingly fierce.In order to expand the user scale and increase user stickiness,the major enterprises are actively developing diversified business sectors.In addition,Internet video enterprises also have the characteristics of high operating risks,high operating costs,operation dependence on information system,transaction information computerization,etc.,which make Internet video enterprises have a more complex audit environment.At present,the number of Internet video enterprises is increasing,and the demand for audit in this industry is also increasing.However,there are relatively few audit studies in this field,so it is necessary to conduct a case study on this industry.Firstly,this paper analyzes the characteristics of the Internet video industry,in order to sort out and conclude the audit difficulties of the industry compared with the traditional industry.Secondly,this paper makes a specific analysis of the case enterprise i Qiyi,and makes a detailed analysis of its potential audit risks from the two aspects of serious and big error risk and inspection risk,so as to verify the audit difficulties of Internet video enterprises.Finally,the paper puts forward some suggestions to prevent audit risks of Internet video enterprises.Based on the analysis of the audit cases of Internet video enterprises,this paper finds that the audit risks of such enterprises mainly come from: the selection and application of accounting policies and the risk of continuing business increase the risk of material misstatement at the level of financial statements;Revenue recognition and measurement,amortization of intangible assets and related party transactions increase the risk of material misstatement at the identification level;Internet video enterprises have higher requirements on the comprehensive ability of auditors and information system audit increases the inspection risk.To this end,this paper puts forward corresponding suggestions: auditors should understand the source of enterprise operating risk,evaluate the enterprise’s sustainable management ability,strengthen the risk assessment of enterprise internal control;Develop audit strategies for income,intangible assets and related party transactions;Improve the overall quality of auditors,verify the reliability of electronic audit evidence,strengthen the information system audit,use "cloud audit" technology.