Research On Modern Risk-oriented Auditing With Risk Assessment Methodology

At present, the risk-oriented advocacy audit, academics claimed that the modern risk-oriented audit, against increasingly complex business and the economy at home and abroad in recent years frequent outbreaks of a series of traumatic major corruption case opened basis. In 2006 the Ministry of Finance issued by the Chinese CPA criteria and implement a comprehensive system of risk-oriented thinking and audit side Act. Modern risk-oriented auditing model, which is developed in western countries, has become a hot issue in China. Although many scholars have conducted a lot of theoretical researches, we have little experiences in practice. In the paper, on the basis of the theory and studies, focusing on the introduction of operation procedures and methods, with the intuitive flowchart, the author elaborates on the risk-oriented auditing model.This paper, in which the author focuses on the basic issues related to modern risk-oriented auditing system, is mainly divided into six parts. In the first part, the author mainly introduces the background, purpose and significance, and main content of this article. Then the author outlines the evolution of the model, and briefly described the meaning of each pattern, main functions, clarifications of auditing, and standards. In the third part, the author mainly analyzes the development stages of risk-oriented auditing system, outlines different meanings and main functions of, the various stages, and compares the two parts. The fourth part is the core of the paper, in which the author elaborates on the operating procedures, including risk assessment, planning, implementation of the mandate of the audit, steps and related auditing tools used. In Part V, the author describes the risk assessment methodology, and visually displays that with case study. The sixth part makes a conclusion for this paper.In this paper, the author mainly uses standardized method, which possesses the following features. First, neither theoretical researches nor practical operations are neglected. In this paper, the author injects some new ideas into auditing procedures on the former theoretical basis, in which there are some specific practical operating methods. Last but not the least, the author describes the whole process of the modern risk-oriented auditing model with forms and flowcharts, by which we can get a more intuitive feelings and clearer appearance of the model.