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The Research On Audit Risk Control

Posted on:2006-11-07Degree:MasterType:Thesis
Country:ChinaCandidate:X Z HuFull Text:PDF
GTID:2156360152470209Subject:Accounting
Abstract/Summary:PDF Full Text Request
In recent years, failing audit cases break out frequently in China and foreign countries. Not only domestic accounting firms but also international accounting firms fall into disrepute and go to bankruptcy. We think the defect of audit risk control is one of the right reasons why audit fails. So the further research on audit risk control is meaningful.Chapter one points out the importance of the research on audit risk control after reviewing the existing related documents. Chapter two studies the excessive competition and the effective competing of audit market and its influence on audit risk. And this chapter studies the audit risk control strategy of different competition's state. Chapter three studies three basic forms of CPA's legal liability and its influence on audit risk control in theory and reality. And suggestions to optimize the legal liability system of audit risk control are put forward. Chapter four think accounting office should distribute in manpower capital according to manpower capital particularity. This chapter sets up general mode of office income distribution and audit risk control with expecting incentive theory, risk income corresponding theory and agency theory, and analyzes the particularity of owner, manager and auditor in income distribution and audit risk control. Chap five analyzes the issues on key controller's selection, such as key position, personnel quality and key controller's special function. And the strategy of key controller's selection, evaluation and control is discussed, too.The main innovation of the thesis include: (1) analyze the influence of the excessive competition and the effective competition of the audit market on inherent risk, control risk and detection risk separately, and figure out that the excessive competition will reduce and the effective competition can improve the level of audit risk control and audit quality. (2)We think, strengthening administrative responsibility can lead to the fact that office worried the loss of existing or future economic benefits and take measures to control audit risk. Improving civil liability compensation risk can impel office control audit risk to avoid future compensation if a lawsuit happens. CPAs reduce the level of audit risk and make benefits. But they may lose freedom which is necessary to enjoy economic benefits. So civil liability keeps CPA not offend against the law because of reducing audit risk level. (3) Analyze the general mode of income distribution way to controls audit risk and propose the method of income arrangement and cooperation control which conform with the character of owner, manager and general auditor. (4)In order to take precautions against key controller's adverse selection and moral hazard, thisthesis proposes four measures: elimination through selection, balancing, income distribution control and property guarantee.
Keywords/Search Tags:Audit risk control, Audit market competition, Legal liability, Income distribution, Key risk controller
PDF Full Text Request
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