Research On Modem Risk-oriented Auditing And Application

As the global economy changes greatly in the 21st century, the enterprises contact more closely with the environment outside. The limit of audit approach which is internal-oriented is becoming more and more obvious. And with a series of cases of fraud in the stock market being revealed it brings unprecedented pressure to auditors. All these force auditing field to focus on risk-oriented audit approach again and continue to do research on this approach to improve it. Based on the above background, the author tries to introduce the recent foreign production to make a systemic and significant research on the modern risk-oriented audit from the aspect of CPA financial statements audit.According to the problems that this paper studies, the whole thesis is divided into six chapters.Chapter 1: Foreword mainly introduces research background, research significance, research structure and methodologies.Chapter 2: The history and development of modern risk-oriented audit. The part introduces the three stages of development of audit mode and reveals the cause of the occurrence and development of modern risk-oriented auditing; then relates its establishment, definition, characteristics and significance to pave the way to the discussion of modern risk-oriented auditing in after chapter.Chapter 3: The theory of modern risk-oriented audit. The author then explores the theoretical basis and the concept framework of risk-oriented audit to lay the foundation for the application of the modern risk-oriented audit. The supporting theories of modern risk-oriented audit include the system theory, the strategic management theory and the fraud motivation theory. The concept framework includes audit risk, materiality, audit risk model and internal control. The improvement of those concepts does favour for the implementation of this approach. At last this part also compares the modern and the traditional risk-oriented audit.Chapter 4: The application of the modern risk-oriented audit. This chapter elaborates the procedures and fundamental methods of the modern risk-oriented audit. Finally the author takes one case for example and analyses it. Based on the new risk audit standards of foreign countries and some literatures, the author designs the auditing procedure of modern risk-oriented audit, especially emphases on the analysis of enterprise and carrying out the auditing process accordingly. At last this part takes one case of audit failures in order to explain the application of modern risk-oriented audit.Chapter 5: The basic policy for our country to develop modern risk-oriented audit. This chapter discusses about the future of the modern risk-oriented audit in China and comes up with some countermeasures and suggestions. The author thinks that the modern risk-oriented audit is a trend of inevitability. And for our country there are disadvantages such as incomplete law environment and corporate governance. But the author states that this can't baffle the development of auditing mode and it just needs establishment in the mean time. So the author puts forward some advice to help carrying out modern risk-oriented audit in China.Chapter 6: The last chapter comes to the conclusion that the application of modern risk-oriented auditing bases on enterprise's business risk, macroscopically know the enterprise and its surroundings, accordingly devise and implement tests of control and substantive procedure.