Assessing Audit Risks in Enterprises on the Growth Enterprise Market: A Grounded Theory Approach

Abstract

This paper adopts the research method of grounded theory, based on the annual report audit of 66 pharmaceutical manufacturing enterprises on the Growth Enterprise Market, exchange supervision and inquiry letters, the CSRC penalty announcement and online public comment materials, and based on the actual situation, to study the audit risk of pharmaceutical enterprises on the Growth Enterprise Market. . The study found that the misstatement risk of pharmaceutical companies on the GEM is divided into the overall level and the specific level. Among them, the overall misstatement is related to the external environment, operating risks, corporate governance, internal control, and related party transactions, while the specific misstatement risks are reflected in revenue recognition, goodwill impairment, R&D expense recognition, inventory valuation, and the availability of accounts receivable. Recoverability and other five aspects. In the context of big data, construct appropriate risk profiles analytical models are critical to the efficiency and quality of audit oversight. Through the research of this paper, it is helpful to assist intermediaries and regulatory authorities to systematically assess the misstatement risk of pharmaceutical companies on the GEM, and to take targeted risk response measures.