Research On Audit Risk Of Going Concern Capability

As the speed of enterprise replacement continues to accelerate,the sustainable management capability of enterprises has gradually attracted attention from all walks of life,and the research on the subject of sustainable management in academia has become more and more in-depth.At present,the global epidemic environment is complex and changeable,the global economy is showing a downward trend,and trade frictions occur from time to time,which have a significant adverse impact on the operating performance,liquidity and even the ability of continuing operations of some listed companies.So,the audit risks faced by certified public accountants have also further increased.However,the existing research mainly judges the audit risks that the CPA may face by analyzing the financial indicators of the enterprise.The factors considered are not comprehensive,and an organic and unified audit risk assessment system has not been formed.In the existing related research,there are more theoretical and empirical research,but few case studies.From the perspective of certified public accountants,firstly,this article analyzes in detail the relevant content of the going concern auditing standards and application guidelines,and counts that from 2017 to 2020,the certified public accountants listed on the issue with a paragraph with "significant uncertainty in going concern".The distribution of the company’s audit opinions,analyze the current judgment of certified public accountants in carrying out the going-concern audit work,so as to comprehensively evaluate the audit status of listed companies with major uncertainties in going-concern,and point out problems that there are major uncertainties in the ability of certified public accountants to conduct going-concern audits.Secondly,according to the existing problems,the audit risk analysis model of listed companies with major uncertainties in the continuous operation audit is constructed from two dimensions: the risk of insufficient assessment of the enterprise’s continuous operation capability and the inspection risk faced by the certified public accountants in the audit work.Finally,select~*ST LV Jing as the case study object,and use the audit risk analysis model constructed above to analyze the audit work carried out by certified public accountants in 2020 from the perspectives of the risk of insufficient corporate sustainability assessment and the risk of certified public accountants’ inspection audit risk.Aiming at the research on the audit risks of listed companies with major uncertainties in going concern,the following conclusions are drawn:(1)When the certified public accountants assess whether there are major uncertainties in the going concern capability of an enterprise,the risks they face are mainly affected by the financial status of the enterprise,operating conditions and other factors.First,the negative net profit,the decline in corporate profitability and solvency,and the uncertainty of major asset restructuring have led to the deterioration of corporate financial conditions and increased the audit risk faced by certified public accountants;The decline of the economic situation,fierce market competition,inappropriate internal development strategies,and potential operational risks have also increased audit risks;The development of funds leads to the deterioration of business operations and increases the audit risk of certified public accountants.(2)The inspection risks faced by certified public accountants mainly stem from failing to maintain sufficient professional prudence,insufficient understanding of auditing standards,and relatively mechanized auditing procedures.In view of the possible audit risks,corresponding risk prevention measures are put forward.Through the research on relevant risks and preventive measures,it will help auditors to identify key risk points when carrying out audit work with major uncertainties in the ability of sustainable operation in the future,improve risk prevention awareness and reduce inspection risks,and provide follow-up audit work of similar enterprises.