Establishment And Consummation Of The Early-warning Management System Of The Audit Risk

With the rapid changes of market economy, enterprises' operating environment becomes increasing 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, ethics, survival and development. But, Audit risk can be controlled. To research audit theory, enhance audit quality and lower the risk to an acceptable lever, accounting company still call be rigorous. Meanwhile, the most critical mission of the audit field is to build and consummate the early-warning management system of the audit risk.There are four parts in this article.In first portion, the author systematically expounds the concept of audit risk at first. Many literatures have different answers. The article probes into this problem and gives its viewpoint. After that, the article discusses the basic characteristics of audit risk and the risk factors. At last, the paper discusses the meaning of early-warning management system of audit risk.In second portion, the purpose of this chapter is to research the present situation of our social audit risk. Through discussing the present situation of audit risk and several important auditing things, we can expound the meaning of establishing and consummating early-warning management system of audit risk.In third portion, the paper discusses how to build and consummate early-warning management system of audit risk .1 depart this chapter three into four parts: the objective, faction, frame and the warning of early-warning management system of the audit risk.In forth portion, the paper discusses the research of the mechanism of early-warning management system of the audit risk. According to the foreign correlate theory, the author discusses the ingredients and methods while evaluating audit risk, inherent risk, controlling risk and detecting risk. After that, the author takes the particularity of our social auditing into account and analyses the present situation and contributing factors of the audit risk, and puts out the measure of keeping away and eluding social audit risk. When confronted with audit risk, people adopted many countermeasures. The portion further explores the control of audit risk when the audit has been completed.