Audit Risk Analysis And Control Of NEEQ Listed Companies

As an important part of China’s capital market,the NEEQ has greatly solved the problems of difficult and expensive financing for China’s small and medium-sized enterprises,and strongly supported the construction of China’s multi-level and diversified capital market system.The NEEQ market’s openness and inclusiveness attracted more and more small and medium-sized enterprises,It has seen explosive growth since 2013.At the same time,due to the low threshold,absence of policies and regulations,lack of regulatory measures,some companies soon have been exposed to financial fraud,bringing serious losses to investors and hindering the healthy development of the NEEQ.In addition,with the expansion of the NEEQ market,the contradiction between the expansion of the business and the professional ability of accounting firms is becoming more and more prominent,and the audit risks are also gradually increasing.As a third-party intermediary institution,accounting firms shoulder the responsibility of checking the quality of accounting information.They should pay attention to improving the business quality of audit on the NEEQ and have an in-depth understanding of the characteristics of listed companies in the NEEQ market,They should have a comprehensive and in-depth analysis in the identification and control of audit risks.Combined with the modern risk-oriented audit model,this paper reviews and studies the existing relevant literature,and summarizes the characteristics and audit risks of the NEEQ market based on the modern risk-oriented audit theory,information asymmetry theory and resource allocation theory.Then taking the audit failure case of Company L,a listed company of NEEQ as the starting point,this paper comprehensively analyze the audit risks of company L from two aspects: material misstatement risks and detection risks.This paper finds that the material misstatement risks of Company L mainly exist in the external environment,governance structure,internal controls,going concern ability,related party transactions,cost and expense confirmation,and the detection risks are mainly manifested in the inadequate implementation of audit procedures,the lack of independence of certified public accountants,the unreasonable allocation of audit resources,and the lack of quality control of the firm.Finally,on the basis of case analysis,this paper puts forward measures and suggestions for CPA accountants to control audit risks when facing the audit business of the NEEQ: accurately analyze corporate governance structure,fully understand internal control,carefully evaluate the ability to continue operations,pay attention to related parties and their transactions;Constantly standardize the implementation of audit procedures and enhance the independence of certified public accountants,and the accounting firms should rationally allocate audit resources when accepting the audit business of the NEEQ,carry out audit business according to the industry groups,formulate audit standards in line with the characteristics of the NEEQ,and improve the audit quality.In addition,some countermeasures are also put forward for the external supervision aspect.Through the analysis,this paper hopes to provide a certain reference for the audit business of the NEEQ for the accounting firms and standardize the market operation.