Study On Comprehensive Audit Risk Management

Since the dependence of various circles of society on auditing product quality is higher and higher, the audit risk that CPAs (Certified Public Accountants) are facing has already surmounted the original level greatly. A series of financial scandals broken into the world in recent years, which made both the audit theory circle and practice circle thinking about how to manage audit risk and improve the audit quality. Foreign researches focus on perfecting the risk-based auditing technology and method. The modern model of audit risk makes up of material misstatement risk and check risk, which indicates the basic idea on "Strategy Analyze — Business Process Analyze — Surplus Risk Analysis of Accounting Statements". Domestic researches proceed with general knowledge of risk management, put forward that the risk should be controlled in the whole course of auditing.This text compares two different concepts of audit risk, proposes the meaning in the research range of this text at first. Audit risk is divided into two levels: first, the accounting firm's loss possibility that auditing fails bring with; second, auditor's possibility that not publishing appropriate suggestion. Then according to "the whole procedure, the whole course and whole people" of risk characteristics, probes into the whole procedure audit risk management in knowledge of risk management; whole course audit risk management in order of real audit work; whole people audit risk management based on audit quality controlling policies of accounting firms and auditors at all levels.