Abstract
With the development of economy, the demand for merger and acquisition of enterprises is increasingly strong, but there are many risks in merger and acquisition that make the process of merger and acquisition not smooth. This paper focuses on the quantification of audit risk, the main difficulties lie in the assessment of audit risk factors, the selection of audit risk factors, the weight distribution of factors and so on. This paper introduces the fuzzy comprehensive evaluation method and takes W Group's merger and acquisition of K enterprise as an example to illustrate the application of this method. The case involved complex accounting measures, unique corporate cultures, and the legal implications of unprecedented policy challenges, factors that made audit risk particularly prominent in the M&A process compared to other companies. The research results show that the risk of material misstatement in M&A audit for W Group's merger and acquisition of K company is medium and high risk, and indicates that the risk assessment model of material misstatement in M&A audit based on fuzzy comprehensive evaluation method can identify and quantify various risk factors more accurately, and provide a powerful decision support tool for auditors. At the same time, the model also has strong flexibility and adaptability, and can be adjusted and optimized according to the characteristics of different M&A cases.
Published Version
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