Study On The Independent Audit Risk In The Information Environment

With the rapid development of the information technology&network and the application of kinds of business, management and financial systems in the main bodies of market economy, the information trend in the audit objects (All are called the audited units) has enhanced gradually. With such a brandy-new information environment, the specific audit targets have increased, the audit objects are enlarged and methods and technique also involve IT. All these make the independent audit risk factors become even more complicated and difficult to determine with the lack of related law and audit criterion in the information environment. The audit profession is always the career with high risks. The risks not only come from the desire and requirement on high quality of audit from the whole society, but also come from the audited units with more and more degree informationization. The risks'problems are the critical difficulties for the CPAs, and comprehension and control the risks are the first jobs in the information environment for auditors.This dissertation analyzes and discusses problems of risks'source, assassment and control deeply in the information environment of the audited units from the angle of CPAs'view by using the theory frame of traditional audit and methods of the modern risk management.This paper begins with the analyzing the influence of information environment to the audit risks. And firstly it defines the concept and characteristics of audit risks in the environment and analyzes the mechanism of the risks'formation, which makes it clear that audit risks are unavoidable and where is the possible sourse from theory angle. Because the specific source of audit risks depends on the audit objectives, the next part of this paper is to analyze the audit specific objectives in detail and summarize the special sources of audit risks in the information environment. And then this paper puts forward the conception of"significant error risk".In the information environment, the accurate assessment of independent audit significant error risk is the kernel audit job. This paper applies synthetically the AHP, entropy weight method and the fuzzy method to evaluate the significant error risk by developing the assessment model of significant error risk according to its characteristics. Using this assessment model can make the determining and assessment of the audit risks more objectively.But assessment of the audit risks is just the prerequisite of the risk control. Because the risks in the information environment is unprecedented complex and difficult to hold, independent auditors must control the audit risks and fulfill the job strictly by the guide of risk-based audit approach. The risk-based audit approach in the information environment is different from the traditional one because its key part is to detect the significant error lying in the electronic data and their information systems. So this approach is named"data-risk-based audit approach". Next, the whole audit working flow, audit test contents and risk controlling methods are analyzed using the cases in audit practice. And the indicators of risk performance assessment are designed on basis of the materiality level. The audit process is also the risk control process. Only CPAs work strictly by this approach, can the audit risks be analyzed, assessed and controlled effectively.At last, one Securities Company with high degree information environment is chosen as empirical verification to test the data-based-risk approach and its risk assessment model. It concludes that they are effective in determining the level and areas of the risks and can promote the effective and efficiency of the audit.