Research On Risk Identification And Prevention Of Overseas Audit Project

With the continuous integration of the world economy,more and more companies in China have begun to gradually expand overseas markets,and the number of overseas projects has naturally increased significantly.Because the characteristics of domestic and foreign projects are obviously different,the resulting risks in overseas audits are also endless,and the scope of overseas project audits is lager and the risks are higher.Due to the problems of weak risk management awareness,lack of overseas audit mechanism,lack of overseas risk and risk management evaluation system,shortage of foreign-related audit professionals,and difficulty in obtaining audit evidence,etc.The effective implementation and final effect of audit projects are affected,the extensive development of audit projects is restricted,and it is difficult to adapt to the audit requirements of overseas risk management,which poses challenges to overseas audits.How to reduce the audit risk of overseas enterprises operated by audit institutions is very important to China’s auditing industry.Based on the theory of Asymmetric information theory,modern risk-oriented auditing theory and life-cycle approach,This paper provides an in-depth audit analysis of Jiangsu Yabite Technology Co.,Ltd,focuses on how to identify the audit risks of overseas enterprises,and proposes corresponding preventive measures.Firstly,the definition and process of project audit risks are explained in detail,the audit process and risks of general projects are introduced,and then the audit process and risks of overseas projects are explained according to the characteristics of overseas project audit risks,combined with the differences between the two audit projects.Secondly,based on the theory of the life-circle approach,the project is divided into system audit in the project establishment stage,financial compliance audit in the construction stage,and benefit audit in the completion stage,and summarizes the audit risk identification content of overseas projects in three corresponding stages.Through the analysis of APCT’s audit cases,in the identification of audit risks of its overseas projects,in the project establishment stage,attention was paid to issues such as the imperfect internal management mechanism,the inherent risks affected by overseas operations,and the unverified authenticity of the project source;In the construction stage,pay attention to the problems of fraudulent project payment for companies,abnormal inventory asset details,and abnormal high gross profit margins of enterprises;In the completion stage,pay attention to problems such as the huge difference between the project and the contract content,and abnormal operating income.Finally,this paper proposes corresponding preventive measures for the identified risks.When conducting the audit at the project initiation stage,pay attention to the pre-project demonstration,and strengthen the contract audit,optimize the company’s equity structure,and actively use the work of experts.When conducting the audit in the construction stage,collect sufficient audit evidence,dig deep into related parties,compare peer enterprises,strictly review cash flow,and play the role of financial compliance audit of project transactions,payment and logistics information.When conducting a completion phase audit,a detailed review of project revenue close to the statement date is carried out to determine whether the project completion results are reliable.These suggestions are of certain significance to improve the audit quality of overseas projects and reduce the audit risks of overseas projects in the case.Based on theory and case analysis,with reference to life-cycle approach of the audit project,corresponding suggestions and measures are put forward for the identification of audit risks from the three stages of project establishment,construction and completion.In order to bring new ideas and new methods for similar domestic companies to achieve the avoiding or preventing audit risks,and then improve audit quality,so as to continuously promote the development of audit risk identification and prevention of overseas projects in China,and help the long-term development of enterprises and audit staff industry.