Research On The Audit Risk About Overseas M&A Of Resource-based Enterprises

With the development of economic globalization and the advancement of information technology,Chinese resource-based enterprises have participated in overseas mergers and acquisitions in order to better expand the international market,obtain resources and technology,and improve economic efficiency.However,due to the large scale of transactions involved in overseas M&A,the complexity of the legal systems applicable to the M&A parties,the different operation and management models and the differences in accounting standards,the audit risks arising from the implementation of M&A audits by assurance institutions such as accounting firms are also increasing.Therefore,in the face of complex overseas M&A activities of resource-based enterprises,how to correctly identify,assess and respond to M&A audit risks is an urgent focus for CPAs to think about,and it is also one of the topics worth studying.Based on the principal-agent theory,risk management theory and risk-oriented audit theory,this paper conducts an in-depth analysis of the characteristics of overseas M&A of resource-based enterprises and the impact on audit risk,and then combines with modern risk-oriented audit model to identify,evaluate and respond to the influencing factors of audit risks faced by accounting firms in overseas M&A of resource-based enterprises,and finally uses hierarchical holographic modeling(HHM).The fuzzy comprehensive evaluation model identifies and evaluates the risk of material misstatement at the financial statement level,the risk of material misstatement at the identification level,and the risk of inspection in the acquisition of Sinopec in the acquisition of Petrochemical in KPMG audit,and puts forward countermeasures and suggestions to reduce the audit risk of enterprise M&A from the level of accounting firms,so as to help accounting firms improve their audit risk control in the field of overseas M&A audit of resource-based enterprises.The innovation of this article is mainly reflected in: the M&A case selected KPMG Sinopec’s acquisition of Addax Petroleum Company in Switzerland,due to the large scale of the transaction,the complexity of the legal system,the different business management models,the difference in accounting standards and other factors,in this case,the audit risk faced by the certified public accountant is also higher and has higher research value;In the past,few M&A audit risk studies focused on the lack of independence of CPAs,but in this case,KPMG was engaged by the acquirer Sinopec and faced less threat to independence,so it was more focused on identifying,assessing and responding to audit risks of accounting firms.At the same time,the HHM model,fuzzy comprehensive evaluation model,is used to evaluate audit risks,which increases the innovation of the paper.