The Research Of Identifying And Testing Procedure Of Audit Risk Under Different Corporate Governance Model

After the audit risk rule changed, the meaning and extension of audit risk had been widened. It makes auditor hard to assess audit risk correctly at his work. Because of the variety and complexity of audit object, the judgment limitation of auditor himself, the bottleneck of audit technique and restriction of information asymmetry, if auditor can't find the severe mistake in financial statement, it's difficult to defend himself for abiding by audit rules. Nevertheless in law, the auditor must pay for the investor's loss if he fails in his function. For improving the ability of identifying audit risk to make auditor adapt the job after audit risk rule changed, from corporate governance point of view, this paper tries to research how the limitation of different corporate governance model affects audit risk and how to identify and test audit risk under this effect.There are five chapters in this paper which primary content is as follows:The first chapter is exordium. The second chapter mainly studies the characteristic comparison of different corporate governance models, the identification of audit risk, the relationship between corporate governance model and audit risk. The third chapter mainly researches three problems: the first is deficiencies of different corporate governance models;the second is that the deficiencies of each model will take what kind of lack to governance function;the third one is that the lack of governance function will have what kind of effect on audit risk. Since there has two previous chapters as research basis, in the fourth chapter the study of audit risk testing procedure under different governance models has research ground. The fourth chapter researches the identifying and testing procedure of audit risk, the testing procedure under each one governance model and the important point in testing procedure. The fifth chapter is conclusion.After research we can find that: audit risk has closely relation with corporate governance model. If corporate governance model has deficiencies, it will led to lack of governance function which will make the control system of corporate governance be no longer effective thatit can't prevent management fraud, affect audit risk significantly. Consequently, when auditor designs the identifying and testing procedure of audit risk, he needs to know what kind of effects deficiency of different models will have on corporate governance and internal management. He should starts from management fraud, inherent risk and control risk to decide the testing route and content of audit risk.