The Identification, Evaluation And Control Of Research On Environmental Auditing Risk

Where there is risk of audit,the environmental auditing which is new branch in particular.This is a key problom for auditors to identify,assess and control risk effectively. Environmental auditing provides a new platform for the modern risk-based audit too.This article draws the environmental auditing practices process under the modern risk-based audit theory,we have studied the systematic process of identify,assess and control the environmental auditing risk.Firstly, we have analyzd the internal and external environment of the audited entity, and have a basic understanding of the basic situation and risk points of the audited entity,then the faulty tree method is applied to environmental auditing risk areas.the faulty tree by constructing the risk of material misstatement,analysis of environmental risks that may exist in the audit points.Then,to quantify the level of risk assessment,we have established the evaluation index system of the risk of material misstatement,the first index 6 and the secondary index 18 makes up the evaluation index system.the evaluation index system mainly from the impact factors of environmental risk by the internal audit and external environment. Process in the establishment of the evaluation index system,we have given of coefficient to each of the evaluation index,and construction of the fuzzy mathematics evaluation model,using the fuzzy athematics evaluation method to assess environmental auditing risk.Finally,the environmental auditing risk control measures presented on this paper based on the assessment. We should use the power of the external experts to transfer of risk, improve the quality of audit staff to enhance risk prevention, improve the quality control of audit risk response,and establish a risk reserve fund.Based on the theoretic studying,the faulty tree and the fuzzy athematics evaluation method used in the environmental auditing example which carried out by The Audit Commission, to identify the environmental auditing risk of a group of chemical companies, and to quantify the level of risk assessment, finally the audit conclusions reached,it is proved that the method is feasible and effective.