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Independent Audit, Risk Prevention And Control Research

Posted on:2003-06-01Degree:MasterType:Thesis
Country:ChinaCandidate:T C DengFull Text:PDF
GTID:2206360092493018Subject:Accounting
Abstract/Summary:PDF Full Text Request
Cases involving CPAs are increasingly multiplied in developed countries at present. Because the economic environments become more uncertain, quite a few enterprises have gone bankrupt or confronted with financial difficulties since 1960s; With the fast growth of capital market, in order to make right investment decision, the level that the public depending on the audit reports and the expectation of the public are becoming higher., Audit risk is increasing with high-speed, CPAs have entered an age of "litigation explosion". In China, with the steady growth of CPA causes, CPAs have been widely acknowledged and attached much more importance to. Correspondingly cases concerning CPAs and the public accounting firms arose continuously. These sound the alarm for CPAs, It's time we put an end to the ignorance of audit risk. Further study on the audit risk and enhanced CPA's awareness of audit risk have much bearing not only on the survival and development of our CPA causes, but also the proper function of our socialist market economy. This article analyzed deeply the concept and features of audit risk based on the generally accepted concept and characteristics of the term "risk". The reasons that the audit risk emerged are analyzed concerning CPAs and the public accounting firms, the subjects audited, the internal and external environments of the subjects ,and so on. In order to get deeper understanding and wider knowledge about audit risk, it is classified on different standards. Since audit risk is the essence of audit, which is of cardinal significance in the auditing theoretical system. In the chapter two, the relationship and difference between audit risk, audit liabilities, audit materiality, audit standards, audit efficiency, audit evidences, audit manuscripts are analyzed. The factors of audit risk model are inherent risk, control risk, detection risk. Their implication and the relationship between each other are discussed in the chapter three; the effects that the three factors have on the audit risk are pointed out, qualitative analysis and quantitative analysis of the three factors are also discussed one by one. In the chapter four of the thesis, the general model of audit risk management and the specific measures to control audit risk are put forward. Theories should guide practices, so in the last chapter, the article proposes manipulative measures to control audit risk in some hazardous auditing fields.
Keywords/Search Tags:Independent Audit, Audit Risk, Prevention, Control
PDF Full Text Request
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