Certified Public Accountants Audit Risk Prevention And Control Cases For Analysis

In recent year, there are more and more financial fraudulent scandals in China as well as in overseas markets. It has demonstrated that accounting information has played a key role in value distribution and in capital markets. As a missionary to reduce the unbalance flow of accounting information and to fill the gap between the owner and management of the company, the public worries the professional quality of the certified public accountant. The independence and the reliability of certified public accountant are questioned by the public too.I performed some researches and studies at audit risk areas by combining the theory of audit risks management and case studies. I wish my research can share the same point of view and have further discussion with certain industry players and some interested readers.For the first chapter of my dissertation, I analyzed the generation, reasons and the prevention of audit risks. I focused at the prevention and control of audit risks. The principles adopted is "Focus on internal and external issues", which include to the following:To establish a completed legal environment;To strengthen propaganda;To communicate with certain government authorities; To solve corporate governance structure and internal control issues;To improve the management and structure of accountancy firms and to improve the quality of certified public accountants.For the second chapter of my dissertation, I introduced the structure of audit risk prevention and control for accountancy firms. The auditing firm should adopt project partnership structure and establish quality control department especially for audit risk control purposes. At the same time, the accountancy firm prepares internal quality management methods to realize total quality management during the whole process.For the third chapter of my dissertation, I used a case study of a power company by elaborating further about the audit risks control including risk examination, audit gauge level and key audit area and so on to improve the audit risk control.