The Study Of Financial Analytical Procedure Based On The Theory Of Risk Based Auditing

With the development of the market economy, market environment has changed a lot, and enterprises are facing the gradually increasing uncertainty. Risk recognition has become much more urgent and significant for modern enterprise than before. When the Financial Crisis of the whole world falls, lots of enterprises are facing risks never have been seen before, such as the prices fluctuation of the raw materials, the value depreciation of the financial assets and the broken of cash chain, etc.. These factors are all disturb the long-term run of the enterprises. And the traditional financial analysis put the emphasis on financial information, mainly uses the indicator analysis. Financial data has lagging disadvantage itself, the choice of the accounting policy lacks comparability, financial analysis is also a kind of post-mortem analysis.Risk-oriented audit is the latest development of internal audit. Internationally speaking, the research on its theories and practical issues is still on preliminary stage. It starts from the strategy analysis of an enterprise, pass through tache analysis, the rest risk analysis and the auditing objective break-down, combine the financial report fraudulent risk and enterprise operating risks tightly together. By using this method, the auditors do not only need pay their attention on financial report itself, but non-financial information of enterprise as well. In this case, it becomes easier for auditors to find fraud and errors from the earliest beginning and it can also contribute to risk detection of the entire business of the enterprise.In this essay, the author is trying to apply risk orient auditing theory to financial analysis. From the point of view of external information user and internal financial manager, the author builds his analytical procedures based on risk orient audit theory. They also start from the analysis of strategy risk of the enterprise, pass through non-financial information and financial report, judge whether the report shows truth and fair of value of the enterprise first, and then analyze the financial data and draw conclusion of the operation of the enterprise and its longer term development. Finally, the author takes huatai Co., Ltd for example, uses the risk-based financial analysis to make detail analysis of it, and demonstrate the feasibility of this method.