Identification And Assessment Of Financial Reporting Fraud Risk Of CPA

Financial reporting fraud in today's global stock market is a widespread phenomenon. The existence of financial reporting fraud has caused the economic development of huge losses. According to the American Association of Certified Fraud Investigation Division (Association of Certified Fraud Examiners) 2002 A research report estimates that fraud losses from the U.S. each year up to 6000 billion U.S. dollars, accounting for 6% of company revenue, not including any financial reporting investor losses due to fraud. For example, Enron (Enron), after exposure of financial reporting fraud, and its stock price plunged, investors lost is estimated about 900 billion U.S. dollars. According to statistics, from May 1991 to March 1997, the world financial derivatives transactions as huge losses caused by the minimum of 15 financial institutions involved in the world, tens of billions of dollars in financial assets, failed to be implemented, in this series of disasters in financial reporting fraud become common knowledge.The frequent occurrence of financial reporting fraud to promote theoretical and practical research community started to pay attention and financial reporting fraud. Certified Public Accountants, as the main body of the financial report audit, financial reporting fraud also been given the inescapable responsibility, financial reporting fraud auditing emerged. Financial reporting fraud financial reporting fraud risk is an important concept in audit, the audit is to avoid the risk of CPA should focus on one of the risks. Therefore, this article of certified public accountants to audit the financial reporting fraud to the financial reporting fraud risk identification and assessment of study guided by its certified public accountant audit practice financial reporting fraud.Article introduces the theory of risk management risk identification and assessment of relevant theories of Certified Public Accountants for financial reporting fraud risk identification and assessment studies, which focused on the following three questions:(1) Financial reporting fraud risks. Through analysis of financial reporting fraud concepts, financial reporting fraud motivation and financial reporting fraud means of financial reporting fraud risks defined, further analysis of financial reporting fraud risks of the main features and major risk factors for the subsequent financial report the identification and assessment of fraud risk basis;(2)Financial reporting fraud risk identification of CPA, first identified from the general concept of the risk of financial reporting fraud risk identification, defining the concept. By introducing the general method of risk identification, combined with the characteristics of financial reporting fraud risks on the financial reporting fraud risk identification methods are described;(3)Financial reporting fraud risk assessments of CPA, financial reporting fraud by defining the concept of risk assessment, financial reporting fraud risk assessment should be carried out in the note explained, with the general risk group identification, after the financial report of their assessment of fraud risk The applications were discussed in detail;Through the above studies, a clear concept of financial reporting fraud risks and fraud risks through the financial reporting methods of identification and assessment for the certified public accountants to audit the financial reporting fraud to provide practical support.The innovation of the article:the first definition of financial reporting fraud risk, enriching the theory of financial reporting fraud auditing research; the risk management theory in the introduction of risk identification and assessment of financial reporting fraud risk identification and assessment, audit of financial reporting fraud theory for the practice of financial reporting fraud audit provides a new way of thinking.