On The Management Of Audit Risk

Since the 60's in 20 century CPA faces with the explosion of the case, audit risk has become a problem that is nearly attended by the auditors in theory and profession. Audit risk's meaning has changed to audit profession risk that integrates the risk of the accounting in the interior of the entity and the managing activities and the external risk what the entity must face in the business with the audit services what is requested by the public are becoming more and more to meet.The paper just develops the discussion on the above base. The part one of the paper discusses the audit risk meaning and the audit risk model. The audit risk meaning should be a generalized meaning (i.e., audit profession risk). On the base this part of the paper analyses the results of the prior research and the limitation of the risk model, and proposes some modifications to the audit risk model that recognizes the limitations. The part two of this paper describes the contents of the audit risk management and develops the auditor business risk control system in response to changes in the audit environment and the existence of industry guidance emphasizing client acceptance and continuance decisions as key phase in audit quality control. In order to emphasize the audit risk management and improve the quality of the audit services, the part three of the paper integrates some countermeasures of risk control and proposes some advices that depends on the specific condition of our country.