Make Use Of Strategic Management For Modern Audit Risk Model's Applying

In recent years, finance corrupted practices happened in the whole world capital marketmake CPAs' audit risk to arouse people's interest once more, and CPA Firms had also paid heavyprice for this. From this, as a new auditing method the modern risk-oriented audit has becomethe hot topic, and the change of audit risk model is more noticeable. In October of 2003, IFACissued a series of new standers and new audit risk model. But there is not the practical method ofassessing risk of material misstatement.In this thesis, firstly I elaborate the basic meaning and the theory of audit risk, and thenanalyze the risk factor and the characteristic of the traditional audit risk model. Secondly, Iintroduce the modern audit risk model. Through the comparison method, I analyze the twomodels and obtain the theoretically progress and the great significance of modern audit riskmodel. Thirdly, I research the relevance between strategic management and audit risk model, andobtain that it is practical to apply the methods of enterprise strategic management in theassessment of risk of material misstatement. Finally, I summarize the rationality and thelimitation and put forward several proposals to utilize the modern audit risk model. Throughthis thesis' analysis and the research, I hope to obtain the solution of modern audit risk model'sutilization question.