System-based Audit And Risk-oriented Audit Study

With the happening of auditing failures of international accountant firms and domestic firms, Risk-Oriented Auditing as an important auditing concept and method receives new concerns from both inside and outside CPA industry. After Enron event, auditing theoretical and practical fields make great studies about Risk-Oriented Auditing. Modern Risk-Oriented Auditing has arisen. It is difficult for us to form correct and entire understanding if we didn' t compare System-Based Auditing and Risk-Oriented Auditing, let alone absorb and refer. As result, only making deep study by comparing in the light of changing circumstances can meet the objective needs of our country to absorb international advanced experiences for facing the 21st century problems, such as audit development and audit education.This paper compares System-Based Auditing and Risk-Oriented Auditing with the use of some research approach, such as comparing, system, deduce, case analyses, etc. in order to reflect the panorama of the two models scientifically. All these analyses are based on some study of the academic research and practices of the Risk-Oriented Auditing of domestic and international.According to the problems that this paper studies, the dissertation separates into five chapters:The first chapter Foreword mainly introduces research background, research significance, research scope and objective, methodologies and innovations and the paper' s drawbacks and the efforts of the future.Chapter two, "The variance of auditing models and the blossom of Risk-Oriented Auditing", exhaustively describes the meaning, basic characters and limitations of three auditing modelsChapter three, "The new development of Risk-Oriented Auditing and several relevant problems", introduces the newest development of Risk-Oriented Auditing and its influence on Chinese auditing standards and several relevant problems. Chapter four, "Comparing between System-based Auditing and Risk-Oriented Auditing Audit", compares the two models deeply from aspects, such as background, guidance, audit objective and extent, understanding of the internal control, the blindness extent of distributing audit resources, audit procedures and methods, etc., in order to reflect the panorama of the two models scientifically. The last chapter, draws the conclusion that the two models both have respective advantages and disadvantages and separate applying scopes. In order to let every model play its role fully, we should take initiatives to create conditions and perfect them continually.