The Application Research Of Audit Risk Through Strategic-systems Lens

In recent twenty years, finance corrupted practices happened in the whole capital market make CPAs' Audit risk to arouse people' s interest once more. And the CPA firms have also paid heavy price for this. From then on, as a new auditing method the modern risk-oriented audit has become the hot topic. The change of audit risk model is more noticeable.In October of 2003, IFAC issued a series of new standers and new audit risk model. Our Ministry of Finance issued the new Audit Standards on Feb25th, 2006 with the international development. These standards were put into practice in this New Year' s Day. But till now there has not the practical method of assessing risk of material misstatement.In this thesis, firstly I elaborate the basic meaning and the theory of audit risk. Secondly I made the research about the characters of traditional and modern risk model. Put the keystone on the appliance of modern risk model through a strategic-system lens. Finally, I summarized the rationality and the limitation and put forward several proposals to utilize the modern audit risk model.This thesis have three innovation points:(1) According to Chinese new audit principles, I think we should research the Audit Risk Model in the Strategic-System lens.(2)Using the methods and experience from Strategy Management, discuss the material audit approach to evaluate the risk of material misstatement. (3)Through analyzing the typical audit case, we attest the rationality of the modern audit risk model.Through the analysis and the research of this thesis, I hope to obtain the solution and improve the audit quality of CPA firms.