Case Analysis Of Lixin’s Audit Risk Control Of JX High-tech Company

With the continuous development of China’s economy and society,as well as the current shift from focusing on growth speed to focusing on growth quality,the improvement of development quality can not be separated from the development of high-tech scientific and technological innovation capability.As a knowledge intensive enterprise,high-tech enterprises are the main force to improve the quality of development and help the transformation of the real economy in addition to the national scientific research projects.Therefore,the state and local governments provide support for their development through the improvement of the policy environment.In recent years,high-tech enterprises have also been valued by all sectors of society and have made considerable progress;In addition,the number of high-tech enterprises increased rapidly after the recognition of high-tech enterprises was relaxed in 2016.Because of its increasing attention and importance,high-tech enterprise audit and audit fields closely related to enterprises have become key research objects,such as the topic of high-tech enterprise audit risk control in this thesis.Due to the characteristics of high-tech,high innovation and multi fields,high-tech enterprises are different from general manufacturing enterprises,and they are quite different from traditional enterprises in terms of business mode,staffing,product characteristics,etc.,so the audit risk of high-tech enterprises is far higher than that of general enterprises.If the certified public accountants only rely on traditional audit methods and audit experience,they may not be able to effectively run audit procedures,achieve audit objectives and control audit risks.In the process of high-tech enterprise audit,the influencing factors of high-tech enterprise audit risk not only lie in the fact that high-tech enterprises themselves are very unfamiliar with auditors in the fields involved,but also in the fact that the policy environment in which the enterprises are located may produce certain fraud risks.Therefore,accounting firms and certified public accountants should re-examine the audit of high-tech enterprises,use reasonable audit procedures,audit techniques and audit methods,focus on controlling the audit risks of high-tech enterprises,and enhance the quality of audit results.From the perspective of accounting firms and certified public accountants,based on the research achievements of scholars at home and abroad,this thesis takes the information asymmetry theory,principal-agent theory,risk management theory,and resource allocation theory as the theoretical basis,adopts the method of literature research,theoretical summary and case analysis,and takes the audit risk control of Lixin Certified Public Accountants on JX high-tech company as an example,This thesis introduces the current situation of the audit risk control of high-tech enterprises,evaluates the audit risk of high-tech enterprises,finds out the problems in the audit risk control of high-tech enterprises,and improves the countermeasures for the audit risk control of high-tech enterprises.So as to provide audit cases and practical experience for high-tech enterprises in the field of audit risk control,and provide strong reference and reliable information for the improvement of audit quality of similar audit projects in the future.The full text is divided into six parts.In addition to the introduction and conclusion of the first and sixth parts,the core content of this paper is the second to fifth parts.The second part covers the concept,objectives and risk control procedures of high-tech enterprise audit risk and its control,and constructs the theoretical basis of this paper based on information asymmetry theory,risk management theory,principal-agent theory and resource allocation theory.The third part introduces the basic situation of JX high-tech enterprises,the audit overview of BDO Lixin Certified Public Accountants,and the current situation of BDO Lixin’s audit risk control over JX high-tech enterprises,including four aspects: business undertaking stage,audit planning stage,audit implementation stage,and audit report stage.From this,the paper presents the case,and then leads to the problems in audit risk control activities,For example,the product and service revenues are confused,the R&D expenses and the number of personnel are difficult to confirm,the audit procedures are unreasonable,and the information system has loopholes.The fourth part introduces the audit risk identification of Lixin from the four stages of audit business undertaking,planning,implementation and reporting,and then introduces the evaluation principles,evaluation methods and the construction of evaluation index system.Finally,it comes to the conclusion that the audit risk of JX Hi Tech Company is relatively high,and there are many uncertain factors,so traditional audit methods and audit plans cannot be used for auditing,The project team and the accounting firm shall make evaluation results of follow-up audit plans and arrangements based on the identified audit risk priorities and audit practices.The fifth part is also based on the four stages of the audit procedure,and from the perspective of the accounting firm,proposes countermeasures for the audit risk control of JX high-tech enterprises.First,in the business undertaking stage,we should grasp the key points and understand the internal situation of the enterprise;The second is to employ external experts in the planning stage and optimize the internal and external forces of the information system to reasonably plan the audit work;Third,in the audit implementation stage,optimize the audit technology and audit methods,deploy experienced auditors,improve the audit of R&D expenses and high-tech related income,and strengthen the pre audit learning of auditors to resolve the resistance to audit implementation;The fourth is to carry out three-level review in the audit report stage,improve the audit supervision system and quality evaluation system,and improve the internal communication mechanism of the firm to strengthen the quality control in the audit report stage.It is hoped that the research results of this paper can contribute to the audit risk control of BDO Lixin Certified Public Accountants and other accounting firms when they perform audit business for high-tech enterprises,contribute to promoting the standardization of high-tech enterprise audit business,reduce the audit risk of high-tech enterprises of accounting firms,and help the healthy development of China’s audit industry.