Research On Audit Risk Of Tianshan Bio-Engineering Cross-Border Merger And Acquisition Of Elephant Advertisement

At present,M & A activities among enterprises are still very active in the market.Enterprises carry out business expansion or strategic transformation through M & A.In the era of big data development,enterprises are keen on mergers and acquisitions of digital media enterprises.However,such cultural industry enterprises have the attribute of asset light,and they tend to be overvalued in mergers and acquisitions,followed by optimistic profit forecasts,high performance commitments,high goodwill and so on.From the performance completion disclosed by listed companies and the integration effect of the merged party’s operation and human resources after M & A,the risks faced by enterprises in M & A activities can not be underestimated.Especially in cross-border mergers and acquisitions of cultural enterprises,the risks faced by auditors are increasing.Based on the above background,from the perspective of cross-border M & A,this paper uses the case study method and the research results of domestic and foreign scholars to study the audit risk of Tianshan bio-engineering cross-border M & A elephant advertisement.The ideas are as follows: firstly,collect the theories related to the audit risk of cross-border M & A,and summarize the commonalities and characteristics of M & A audit and general audit.Secondly,it explains the reasons for choosing this case as the research object of cross-border M & A audit risk,and mainly analyzes the particularity of M & A Cultural Industry and the characteristics of the case itself.Then,it introduces the M & A,analyzes the audit risk of this case combined with the modern audit model,and finally,the corresponding measures are put forward.The actual findings of this study are as follows:First,the risk points of major misstatement at financial statement level in the advertisement of Tianshan bio-engineering cross-border M & A elephant advertisement are mainly distributed in the external environment,ownership structure setting,corporate strategic choice and changes in merger and acquisition business activities.In view of these risks,this paper argues that auditors should fully understand the m&a environment of both enterprises and judge whether the purpose of m&a is reasonable from the strategic choice.Second,the major misstatement risk points at the identification level in the advertisement of Tianshan bio-engineering cross-border M & A elephant advertisement are mainly distributed in the change of accounting policy,recognition and impairment of goodwill,and poor execution of internal control.In view of the above risks,this paper believes that auditors should pay close attention to the changes of key indicators,appropriately increase the unpredictability of audit procedures,judge the possibility of goodwill impairment,and pay special attention to the implementation of internal control when testing the effectiveness of internal control.Third,the inspection risk of Tianshan bio-engineering cross-border M & a elephant advertisement mainly lies in the independence of accountants,the implementation of audit procedures and the attention to key data under multiple games.In view of the above risks,this paper believes that accounting affairs can establish a learning platform for M & A auditors,use information technology to assist the audit work,and strengthen the control of correspondence procedures by introducing correspondence tracking system and establishing correspondence center,Fourth,through the analysis of the particularity of audit,it is found that under the different audit objectives of M & A and the audit relationship of pairwise game,auditors will face higher audit inspection risk,and the wider audit scope in cross-border M & A will have an impact on the overall risk of audit work.At present,there is less research literature on the audit risk of cross-border M & A.in the cases selected in this paper,the acquirer has been listed on the A-share market for many years,and the acquiree has also been listed on the new third board.The public information of both is easy to obtain,and the cases are timely and representative.This paper hopes to supplement the relevant literature and provide reference for the staff involved in cross-border M & A audit in practice.