Research On The Application Of Modern Risk-oriented Audit In Public Companies In China

With economic vocation complication and increasing management fraud, we are faced with more audit risk, which brings more law responsibilities and economic compensation. IT is necessary for domestic CPA firms to study and adopt modern risk-oriented audit in order to improve audit efficiency and strengthen competitive ability. The conclusions are as follows:1 -. The concept, characteristics of modern risk-oriented audit and involved risk factors. Modern risk-oriented audit thinks that CPAs should look closely at business risk from higher angle and find out accountant fraud from the source to distinguish significant error and in the statements. The characteristics are as follows: (l)put hand to the analysis of strategy risk; (2)risk evaluation is focused on combined risk; (3) evaluate audit risk indirectly; (4)risk evaluation is systematized; (5) the center of risk evaluation is analytical test; (6)the center of gravity of CPA professional knowledge is moved forward; (7)audit test procedures has own character; (8)it is integrated that from up to down and from down to up; (9)obtaining audit intelligent depends on more staff s and external people; (10)depend on more external evidence; (11)audit scope and professional have no boundary line. The thought risk factors concern the trade of the client management, the district in which the client is, the management credit, staff, organism and management pattern, profit and management prediction, something about the statements, the assets, current assets and finance and not estimated loss.2, The methods, the model of audit risk, audit procedures of modern risk-oriented audit. The methods include strategy analysis, process analysis and deciding audit procedures according to the statements and the estimated outcome. The model of audit risk is as followed: audit risk=significant error riskxdetection risk. The audit procedures are based on "determining whole...