Audit Risks and Countermeasures in Live-Streaming E-Commerce under the New Retail Model

Abstract

Under the impetus of internet technology and data elements, new retail has propelled the transformation of retail formats from single-channel operation to the in-depth integration of online and offline businesses, among which live-streaming e-commerce, as a crucial implementation form of new retail, has experienced rapid expansion. However, its distinctive characteristics including cross-platform operation, high-frequency transactions and profit-sharing among multiple entities have significantly elevated the audit risks of financial statements. Based on the risk-oriented audit theory, this paper takes Yaowang Technology as a case study and draws on public information such as inquiry letters from the Shenzhen Stock Exchange, regulatory decision documents and the company’s annual reports, to identify the material misstatement risks of live-streaming e-commerce enterprises from three dimensions: the financial statement level, the assertion level and the detection risk. In response to the aforementioned risks, this paper puts forward a systematic set of strategies for addressing audit risks, which involve strengthening industry cognition and strategic risk assessment, improving internal control evaluation procedures and enhancing information technology auditing capabilities. This study aims to provide practical and operable ideas for risk identification and audit procedure design in audit practice, while also offering references for live-streaming e-commerce enterprises to optimize their internal control systems and improve the quality of financial information disclosure.