Modern Risk-based Audit In Practice The Use Of Research

At present, there is a wide gap in theory and practice of the modern risk-oriented audit approach between China and other countries. This thesis makes a study on the principle and exercise of the modern risk-oriented audit approach (be called business risk audit approach overseas), aiming at narrowing the gap and promoting related research and employment of this method in our country.This paper consists of four parts.Chapter 1 is the first part. Great changes have taken place in economic circumstances. There is a necessity to make a study on the principle and exercise of the modern risk-oriented audit approach, as wide gap exists between China and other countries in this aspect.Chapter 2 is the second part, including the research and the exercise of the modern risk-oriented audit approach. The appearance and development of the system info provide theoretical guidance for the modern risk-oriented audit approach: the theory of strategic management acts as its base. Strategic management is a new and basic method of auditing, requiring the CPA to complete the auditing along"from above to below"and "from bottom to top". Firstly, we comprehend the content, time and confine of the materiality testing by analyzing the strategy—the key management and the remnant risk analysis. Secondly, we complete the auditing through the materiality testing.Chapter 3 is the third part. We research on how to handle the new method through an example, the company B. The result of the study indicates that the new method is more thorough and efficient than former ones. It is necessary to work out a new audit-rule, discarding the old audit-rule, to improve the cognitive and learning ability of CPA, changing the organization of CPAS and accepting the help from exterior experts.Chapter 4 is the fourth part. We summarize the main points, conclusion and advice on this paper.