Research On The Effective Identification Of Audit Risks By Lixin Certified Public Accountants And Its Enlightenment

With the vigorous development of the capital market,the majority of information users have increasingly high requirements for the quality of information disclosed by listed companies,and have higher expectations for certified public accountants that provide intermediary services.However,in recent years,financial fraud in listed companies has emerged in an endless stream,with a variety of fraudulent methods.Subsequently,audit failure cases of certified public accountants have been frequently exposed,causing concern about the audit quality of certified public accountants.After conducting statistics on the penalties announced by the CSRC in the past decade,it was found that 80%of the penalties were due to the audit failure of the financial reports of listed companies.As the most fundamental and important business module of certified public accountants,financial report auditing is worth studying for its frequent errors.As a leading domestic accounting firm,Lixin Certified Public Accountants was punished by the CSRC as many as four times during 2016-2020.So,what factors affect the identification of audit risks,and what are the current problems that Lixin Certified Public Accountants has in the audit process?Based on this,this article studies the audit risk influencing factors of Lixin Certified Public Accountants,exploring the reasons for several cases of audit failure and the current situation of audit risk of Lixin Certified Public Accountants,in order to obtain profound enlightenment.Based on theories such as information asymmetry and principal-agent theory,using literature research methods and risk factor analysis methods,this paper analyzes the factors that affect audit risk identification from two dimensions:audit subject and audit object.At the same time,this article analyzes four audit cases of Lixin Certified Public Accountants,deeply analyzes the current situation of audit risk identification of Lixin Certified Public Accountants,and analyzes the existing problems.Finally,based on the concept of audit risk,this paper proposes an idea to optimize the audit risk identification ability of Lixin Certified Public Accountants.Research has shown that audit tenure,consistency with previous year’s audit opinions,growth rate of sales revenue,net profit ratio,profit and loss,board size,and negative sentiment index all have a significant impact on the identification of audit risks.Based on the analysis of the influencing factors of significant audit risk identification,we found the following obvious problems:Firstly,it took too long to continuously provide audit services for enterprises;Secondly,insufficient attention has been paid to the management’s fraudulent motives and behaviors;Third,insufficient attention is paid to the internal system of enterprises;Fourth,the acquisition of audit evidence is insufficient.In response to the above issues,this article draws corresponding inspiration from two dimensions.On the one hand,Lixin Certified Public Accountants should shorten the audit tenure,improve the rotation mechanism,maintain professional skepticism among auditors,and improve the audit risk identification model to improve audit quality.On the other hand,it is necessary to pay attention to whether the audited entity has fraudulent motives,inspect its economic behavior,analyze the property rights structure,and collect sufficient audit clues to reduce audit risks.