Study On Audit Risk Control Of CPA Firms

With the rapid changes of market economy, enterprises' operating environment becomes increasingly multifarious, complicated and professional. In order to cope with the changes, CPAs are confronting with heavy job duties and bearing more responsibilities. As a result, the business risk has been increasing tremendously. Litigations involving CPAs and their firms are increasingly multiplied. And these litigations bring negative effects on our CPA business goodwill, ethics, survival and development. Meanwhile, the most critical mission of the audit field is to raise CPA's awareness and control of audit risk. This dissertation begins with the negative effects of audit failure, analyses the causes of audit risk, and finally comes up with constructive proposals on audit risk control.This dissertation is going to probe into the subject of audit risk control of CPA firms in four chapters.Chapter one introduces the negative effects of audit failure with case studies, in order to point out the importance of audit risk control.Chapter two lists the causes of audit risk that form the base for setting up the audit risk control system.Chapter three studies how to manage and control audit risk, reduce or even eliminate the audit risk in order to protect CPAs and their firms.Chapter four draws a conclusion for the dissertation, points out its limitation and put forward some problems that need further study and discussion.