The Rearch Of Audit Risk Model Based On Legal Risk

Since the 1990s, the economic environment has been become complex day by day.The risk of business failure and financial statement fraud has been increased gradually, audit failures cases are numerous, the CPA practice environment has undergone significant changes and the legal proceedings concerning registered public accounting firm are also more and more . the pressure is also growing while the accounting firms assess audit risk. To meet the audit changes in the environment, and fundamentally improve the ability of the CPA to assess risk and detect fraud, domestic and foreign scholars continue to study, hoping to find out a model to effectively control the audit risk from the legal risk point of view as to improve audit quality, which allow the study of the paper has a certain practical significance.Full-text is divided into six parts. The first part is an introduction ,begin with the background and the significance of the study, in analyzing the status of international research on the audit risk model to explore the main content and research methods of this study; The second part is the basic theory of audit risk, which explains the meaning of audit risk from the two perspective of "Opinions Inappropriate Theory "and" Loss Possibility ", combined with the essence of this article, redefines the audit risk, while analyzing the characteristics of audit risk and its causes; The third part is an overview of the audit risk model; The fourth part is the focus of this article, combined with the third part of the audit risk model for further analysis of risk factors and their assessment methods, focuses on the improvement of the audit risk model and its effectiveness; The fifth part start from the audit failure of the Kelon VS Deloitte & case, reassesses the Kelon audit risk in application of improved audit risk model ,derives that the improved audit risk model is indeed able to reduce audit risk, and has more advantages than the modern audit risk model.; the sixth part aims at the actual situation of our country, describes the possibility of the application of the improved audit risk model, and puts forward some suggestions from the CPA and the Government's point of view.