On The Uncertainty Of Audit

Research background The world was filled with the uncertainty. Many subjects arethrowing vision toward the research field of uncertainty. Uncertaintyusually connects with probability or illegibility, so researching onuncertainty is more complicated, compared with assurance items research.There are so many uncertainty items during the process of auditing andbecause auditing is a work that needs the professional judgment, which isalways combined with the subjective factor. All of these will affect theauditing strategy even the auditing conclusion. According to the latestdata, up to April 1 in 2005, there are 733 accounting firms who havepromulgated the auditing reports for stock companies. There are 3%Un-standard auditing opinion among them. Most of the reasons toun-standard auditing opinion are guarantee, the ability of persistentconduct and reserves. The ability of persistent conduct is a kind ofestimate on the future, so it belongs to the research scope of uncertaintyaudit. And the reserve is based on a series of accounting supposes and thecautious principle. It also belongs to the research scope of uncertaintyaudit. So uncertainty items are the most important factor, which have aninfluence to audit conclusion. It's necessary to carry on the research onuncertainty audit. The Chinese Institute of Certified Public Accountants (CICPA) hasrevised auditing criterion----. It requests CPAs must pay attention to theaudited company's ability of persistent conduct and evaluated the abilityof persistent conduct's influence on audit report. This is the first standardon the uncertain audit. That means the importance of uncertain audit ismore and more be recognized by the business enterprises. Although theresearch on uncertainty audit is just on the beginning stage, but thestandard has been established is a good start.Research Logic According to background mentioned above, the writer prepares toresearch the uncertainty audit. Uncertainty audit is a creative conception.It's a complement to the existing audit theory. The research logic of thisthesis is: Surround the problems of uncertainty during auditing process,from abstract to specific, from general to specific, we carry on theresearch of uncertainty audit. Chapter 1 is the beginning of research inthis thesis. After comparing the research result on the uncertainty problemof other subjects, we describe the comprehension of uncertainty in thisthesis. It brings the subject of this thesis out. Chapter 2 sets up a theorysystem of uncertainty audit, and analysis the necessity and possibilities ofthe uncertainty audit. It's the theory cushion. Chapter 3 enumeratesseveral examples of the uncertainty audit, combined with the auditingpractice. It's discussion on auditing practice. The last chapter discussesthe risk of the uncertainty audit, aiming at control audit risk. It's the finalpurpose of the research on the uncertainty audit.Structure of this Thesis The thesis is divided into 4 chapters altogether. The structure andmain points are listed as follows: Chapter 1: Uncertainty and audit. At first, we elaborate thecomprehension of uncertainty, by means of comparing the conception ofuncertainty of other subjects. Then the writer discusses the uncertainty inaudit, and analyses the formation cause of the uncertainty in audit. Wediscuss the impact of uncertainty to audit from views of theory andpractice. We put the conception of uncertainty to audit research fieldgradually. Chapter 2: General frame of the uncertainty audit's theory. Thischapter discusses the significance and the feasibility of the uncertaintyaudit. It concludes the conception of the uncertainty audit and classified it.Then it analyses the theory of the uncertainty audit with the theories ofthe information economics, because audit was a part of the process ofinformation transfer. The frame of the uncertainty audit theory mainlyincludes the target, function, standard, method, report…and so on. Chapter 3: The examples of the uncertainty audit.