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Research Of Audit Risk And Risk-Based Auditing Application

Posted on:2004-07-31Degree:MasterType:Thesis
Country:ChinaCandidate:J LuFull Text:PDF
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As the result of the separation of the droit structure from the responsibility in social economy, auditing is expected to come up with the opinion and draw a conclusion according to the financial statements, which is followed by corresponding responsibility In the audit process, auditors are always getting into the potential professional risk, and as a whole, the auditing vocation will face the probability of lawsuit and compensation in any time So it is very necessary to pay attention to the risk components in audit process and find how to avoid the audit risk And one of the feasible measures is to carry out risk-based auditingAfter transaction-based auditing and system-based auditing, risk-based auditing is a new audit style which has been popular in developed countries in these years It bases itself upon the systemic analysis and evaluation of the audit risk, and requires the auditors that they should evaluate not only the control risk, but also all the aspects resulting in the risk, so that they could confirm the keystone of the substantive tests and test level, and decide how to collect evidence, how much evidence to collect and which evidence to collectThe article takes the comments of Enron and Yinguangxia as the foreword, and points out that audit risk is existing anywhere and anytime It presents the reasons of audit risk as well as the risk components, and comes up with the concept of audit risk model The article applies many figures and forms to illuminate the quantitative relation among the risk components and the applying form of the audit risk model Afterwards, the article makes detailed expatiation of the particularity of Chinese civilian audit risk and important risk fields that CPAs are confronted with, and brings forward some views about the reasons of the lawsuit crisis in auditing vocation, followed by the corresponding measures for avoiding the crisisIn order to get risk-based auditing known by people, the article gives an overview of the basic procedure and methods of risk-based auditing and makes an illustration with emphasis of the evaluation of internal control and audit sampling, which are the two peculiarities of risk-based auditing In the part of demonstration analysis, this article takes the financial statements of 2002 of China Unicom Joint-Stock Company as the background, and makes a simulative actualization of risk-based auditing In the process, the article emphasizes how to decide the important risk field, how to evaluate the internal control and how to make audit sampling, instead of introducing the same audit procedures as those with traditional audit style In addition, the article makes a farther analysis of the case of Yinguangxia, pointing out that risk-based auditing can improve audit quality and avoid audit risk more effective than transaction-based auditing and system-based auditing with the contrast technique The final part of the article sets forth the practical signality of spreading risk-based auditing and some problems that need to be payed attention to in the actualization...
Keywords/Search Tags:audit risk, audit risk model, risk-based auditing, internal control, audit sampling
PDF Full Text Request
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