The Measuring And Control Of Public Audit Risk

Because of the audit basis changed from account basis to risk control basis and the approach of audit changed from detailed audit to sampled audit based inner control, the audit risk happened inevitability. How to control the audit risk and which audit risk can be acceptable became a worldwide topic. When in the era of 90th, the audit risk was brought to agenda. Under these social environments, the research of audit risk occupied the importance not only theoretical but also practical. All in all, the research of audit risk can be divided to several parts. First, open up the article's practical significance by some important audit incidences happened in or over the country. The second is the qualitative research. The author expounds audit risk from definition, feature, essence, and forming reasons, all these can acquaint readers with audit risk. So we can quantify audit risk by above steps. Because of the different apprehensions of audit risk must lead to different measure results. The research of quantitative must based of qualitative research. The third is the quantitative of audit risk. In this part, the author illustrated that audit risk is not the smaller the better by correlation in Randomized strategies and rectify the wrong opinion of eliminating audit risk totally. Control the audit risk in some range is the ideal result and we must make use of audit risk model reach this purpose. And then introduce a improved model for measuring audit risk by analyzing the former model. The author also deduced the audit risk from the new model by syntheses illegible evaluate. Finally, the article describe the management and control of audit risk and referred concrete steps to control audit risk: education, enforcement and engineering.