Research On Risk-Oriented Auditing In Our Country

In past few years, our country's Certified Public Accountants audit has great development and it plays an important role in society's economic construction. But with the continuous change of external environment and the gradual increase of audit risk, how should Certified Public Accountants make necessary adjustment to adapt to this change, this is the question that the audit profession circles and the academic circles are both discussing. In the course of history, auditing mode went through three stages: accounting number-based auditing, system-based auditing and risk-oriented auditing. Risk-oriented auditing developed from accounting number-based auditing and system-based auditing. It stands for the development trend of modern audit. Risk-oriented auditing emphasizes audit strategy, makes use of audit risk model and adopts analytical procedures. The most important approach of risk-oriented auditing is the assessment on audit risk. As an important audit idea and method, risk-oriented auditing is being paid new attention by the supervision department, the audit profession circles and the academic circles along with the breakout of domestic and international audit failure. One of CICPA's 2003 research subjects is risk-oriented auditing; Shanghai National Accounting Institute established a laboratory to study it exclusively; and Beijing National Accounting Institute is also doing research on it together with World Bank. After the collapse of energy giant Enron Corporation, a lot of news report showed that audit quality of the "five big" make person worried. At the same time, people put forward query to risk-oriented auditing mode which the "five big" extensively adopt. Some people think that those affairs such as Enron Event attribute to the failure of this mode to a large extent, therefore they request us to rethink even stop adopting it. Others argue that the problems of Zhongtianqing accounting firm is because they did not adopt the risk-oriented auditing mode. These opinions show that we lack thorough understanding about risk-oriented auditing and it is still in the course of development and improvement. As a new basic audit method, risk-oriented auditing has exhibited scientificalness and usefulness in theory and practice. For the sake of the development of the audit industry in our country, we should research and study it actively. The major audit mode in our country is system-based auditing, and it has many defaults. However, whether it means it is the best choice for Certified Public Accountants to use risk-oriented auditing? In practice, how should we use it concretely to adapt to our country's situation? And how should audit standards be made modification? All these problems need to be solved. The thesis mainly uses such methods: normal research, qualitative analysis, logical analysis and case study. The author expects to find out a risk-oriented auditing method suitable to our national condition by doing research on it. The risk-oriented auditing will contribute to our national audit theory research and practice application and improve our national audit technical level and international competitiveness of accountant firms. The thesis includes five chapters: Chapter 1 introduces the development phase of audit mode and reveals the cause of the occurrence and development of risk-oriented auditing; then relates its characteristics and object. Chapter 2 points out the theoretical bases of risk-oriented auditing: audit risk, internal control, system theory and strategic management theory. The first section in it defines the concept of audit risk by classing it into three levels: the narrowest level, the narrow level and the wide level. The development of internal control went through five stages: Internal Check, Internal Control System, Internal Control Structure, Internal Control Integrated Framework and Enterprise Risk Management Framework. The change of social environment makes auditors apply system theory and strategic management theory in the audit. Chapter 3 describes the model of ri...