Research On Audit Risk Evaluation Of New Retail Enterprises

In a new round of global industrial innovation,big data,artificial intelligence,mobile Internet and other technologies are deeply integrated with all sectors of the economy,driving the transformation of consumer demand and business models.Social platforms have greatly improved the timeliness of information,and the interaction of data resources has broken the regional restrictions,prompting enterprises to change their previous business models and modes of operation.Among them,after the transformation of e-commerce,the retail industry has developed a new business model-the new retail business model.New business models may give rise to new financial fraud models.New retail enterprises mainly conduct business transactions with virtualized transaction data and advanced information system,which makes great changes in internal and external audit environment,audit objects and other audit factors.The audit risk influencing factors are more extensive,which requires auditors to identify with risk-oriented and data analysis thinking.In view of this,based on the relevant theories of modern audit risk model,this paper takes Luckin Coffee,a representative new retail enterprise,as the research object,analyzes and evaluates its audit risk factors,and puts forward targeted risk prevention measures,in order to provide policy suggestions for new retail enterprises in China to prevent audit risk.The research contents and conclusions of this paper are as follows:First,the audit status analysis of new retail enterprises.According to the summary of audit reports of new retail listed companies,analyze the issuance of audit opinions on financial statements,internal control audit opinions and key audit items of new retail companies.The audit risks of new retail enterprises are mainly caused by the expansion of the scope of audit objects,the reduction of audit clues,the non-visibility and the uncertainty of business model.Second,the new retail enterprise audit risk factor analysis and evaluation system construction.By using the modern audit risk model,this paper analyzes the audit risk factors of the new retail industry based on the characteristics of data-oriented and sustainable business model.Analytic Hierarchy Process is used to construct the new retail industry audit risk evaluation system.The risk factors at the financial statement level mainly include: business strategy and competition risk,the new retail business model is not sustainable,the risk at the leadership level,and the internal control of the information system is invalid.Risk factors at the identification level mainly include operating revenue inflated risk,related party transaction risk,resource allocation risk,etc.Risk factors at the inspection level include audit independence,auditors’ mastery of the new retail enterprise system and electronic data,selection and application of audit techniques and methods,etc.Third,Luckin Coffee audit risk assessment analysis.According to the new retail enterprise audit risk evaluation system,combined with the operating characteristics and financial status of Luckin,Luckin Coffee,a typical new retail enterprise,was analyzed for risk factors.Then use AHP to determine the weight coefficient of each risk factor relative to the overall audit risk.The evaluation results show that the effectiveness and data authenticity of the internal control system of information system,the inflated risk of operating revenue,the feasibility and continuity of Luckin’s business model,the independence of auditors,and the risk index of leadership level have the greatest impact on the audit risk of Luckin.Based on the above conclusions,this paper proposes the following countermeasures and suggestions: First,strengthen the evaluation of the effectiveness of the internal control system of the testing information system and the authenticity of the data;Second,pay attention to the authenticity and accuracy of income,master the business model and capital flow of new retail enterprises,and ensure that the payment of various channels are included in the financial accounting system;The third is to analyze the feasibility and continuity of the business model,identify the uncertainties of the business model,to avoid the risk of misjudgment of going concern;Fourth,we should pay attention to the fraud motivation and moral violation at the leadership level to deal with the risk of major misstatement,and pay attention to the concentration of the ownership structure of the audited units and the internal control system of shareholders’ rights.Fifth,enhance the auditor’s independence to reduce the inspection risk;Six is to use the corresponding audit technology and information technology to audit and evaluate the security and effectiveness of the information system;The seventh is to cultivate the ability of auditors to use computer technology to deal with inspection risks.