The Research On CPA's Fraud Audits On The Basis Of Enterprise's Internal Control

With the development of economy, fraud has become a global hot issue, whose wide and deep impact on the global economy has reached alarming proportions. Fraud arises from the failure of internal control, which not only plays a crucial role for the survival and development of the enterprise and the achievement of the organizational goals, but also is a key factor to influence CPA to complete fraud audits effectively and economically.At first, this thesis focuses on the relationship between enterprises' internal control and the CPA's fraud audits. Firstly, this thesis clarifies theoretical basis about the relationship between internal control and fraud auditing, which are the internal control theory, expected utility theory, risk theory and game theory. Then, this thesis discusses problems existing in internal control and fraud audits, which are mainly consisted of being lack of uniform evaluation standards and operability, different value determination of internal control for different risk preference, low level of company's utomated control, inadequate testing to the action of overcoming internal control, and so on. In addition, then the thesis analyses the status quo, comprehensively using expected utility theory, risk theory and game theory, and considers the causes mainly composed of the constraint to evaluation criteria from cost-effectiveness, the influence to the results of fraud auditing from the CPA's risk preference, inadequate control testing for inadequate game, etc. Finally, this thesis puts forward countermeasures on the basis of the existed problems and causes of internal controls and fraud audits, including unifying evaluation standards of internal control and raise its operability, understanding the audited companies and their environment deeply, improving expectations of internal controls to guard against fraud, establishing the risk conception adapted to internal controls, and enhancing the CPA's professional ability to judge. In short, the CPA should focus on the testing of internal control in order to make fraud audits achieve good results.