The Study Of Application Of Audit Risk Model On ERP

With the development of science and technology, nowadays people master many modern and effective management information systems. Enterprise Resource Planning is the quintessence of those MISs. Many ERP application software based on the concept of ERP were applied by the companies in different countries, what was more, the application of ERP has promoted the development and efficiency of enterprises. In the meantime, the application of ERP brings big influence to the CPA auditing. It increases the difficulty and risk of auditing, which can be seen from the truth that many CPA firms became defendant. Hence, the search of the application of audit risk model under ERP can help CPAs analysis and control the audit risk and increase the quality of audit in the environment of ERP, which has important meaning of theory and practice.From the domestic and oversea research concerned, it can be seen that the search about the application of audit risk model under ERP just appear, and there are not a lot research concerned. Therefore, this paper plans to study this problem using the way below: first, the theory of audit risk model and ERP are explained to provide the theory background, which contain the following theories: the concept and specialty of risk-based auditing, the analysis of factor of audit risk model, the concept and the management thought; second, the influence of the application of ERP to the audit is discussed to lead the following discussion about audit risk model, which contains: the influence to the content of audit, the track of audit, the pattern of audit, the procedure of audit and the environment of audit; at last, based on the discussion above, the analysis of the factors of audit risk model(inherent risk, control risk and detection risk) under the environment of ERP is made. To help the CPA to evaluate the audit risk, this paper discuss the control risk of the purchasing and paying circle, the selling and gathering circle, the currency circle and the internal control of the information system.