Research On Environmental Auditing Risk

Today, in the society, the risk has already impregnated into every aspect of the society. It is an important question that how the auditors identify and evaluate the risk, consider the effect of the risk to the environmental auditing and take measures to reply the risk. Also this is a question that the modern risk-based audit thought may help the auditors to solve.We have studied every element of environmental auditing risk in this paper on the basis of others' research. Our goal is to make the theory more systematic and more rational for the practice. There are six parts in the paper except for the example in the appendix. The main contents of each part are as follows:Part one, the preface. We have summarize the main achievements of others' research in this field and made some comments on the achievements. We points out that the present research is neither deep enough nor systematic, though there are some achievements. Then, the research road of this paper is given at the end of this part.Part two, the basic questions of the environmental auditing risk. The environmental auditing risk is the possibilities that the auditors and their organizations suffer from loss or unfavorable that they don't want to appear during the process of the environmental auditing, including two elements, they are the risk of material misstatement, and environmental detection risk. This is our define for environmental auditing risk, which is interpreted from generalized angle, on the basis of the modern risk-based audit thought and the features of the environmental auditing risk-self. Also basing the thought, this part has analyzed basic questions of environmental auditing risk, such as its origin, features, model and management.Part three, the identification of the environmental auditing risk. In the part, we have listed the possible risk points of the environment auditing, and introduced some used methods for identification of the risk, such as full tree analytic method, Delphi Technique, financial statements analytic method, flowchart analytic method, the spot investigation method and field objection method. At the same time, we have also carried on the case analysis to explain these methods.Part four, the evaluation of the environmental auditing risk. In the part, we have introduced how analyze and measure the risk deeply by using qualitative method of risk evaluation, fuzzy comprehensive judgments method, risk factor analysis method, the model method of environmental auditing risk and analytical procedures method.Part five, the reply of the environmental auditing risk. In the part, we may adopt such methods as risk transfer, risk prevention, risk control, risk avoidance and so on. The part with part three and part four, we introduce the environmental auditing risk management model, and the three parts are the core of the paper.Part six, conclusion and suggestion. In this part, we point out that the basic conclusions of the environmental auditing risk and suggestion for environmental auditing risk management. Also, we point out the innovation, the limitation and the next research road of this paper.The appendix, an example of environmental auditing risk management. By analyzing concretely the case of pilot working money audit that was used for returning land for farming to forestry executed by audit administration, we depend our anterior theory research.