Research on the assessment of the risk of material misstatement of the enterprise under internet plus environment

Abstract

Internet plus era has brought great changes to the enterprise. The changes of the enterprise's business process and internal control increase the difficulty of evaluating the risk of material misstatement. In order to grasp the risk of material misstatement under Internet plus environment more accurately, this paper selects enterprises issued non-standard and standard audit opinions within five years as material misstatement and non-misstatement sample. According to Internet plus environment's influences on business, we choose four types of index: strategic risk, business process risk, control risk and accounting risk to set up the enterprises' evaluation index system of risk of material misstatement under Internet plus environment. We use genetic algorithm to optimize Back Propagation neural network (which is called as GA-BP neural network in the text) evaluation model to assess the enterprises' risk of material misstatement under Internet plus environment. We select 640 sample data of listed companies to do empirical and simulation analysis. The results find that GA-BP neural network has higher prediction accuracy than Back Propagation neural network (which is called as BP neural network in the text). It can be effectively applied to material misstatement risk assessment under Internet plus environment.