Research Of Modern Risk-oriented Audit In The Practice Of ZH Group

In recent years, a series of big financial frauds were broken out consecutively domesticallyand at abroad, most of which are management frauds, and the CPAs industry is also faced withcredit crisis. Arthur Andersen, one of the world’s "Big Five" accounting firms came tumblingdown in the issue of American Enron, meanwhile, there are also frauds in China, such asYinguangxia, Kelon electrical and Green-Land, Shengjing shanhe. So the audit theoretic andpractice are researching the new audit model, in order to reduce the audit risk. It is very fewcases to successfully apply risk-oriented auditing theory and find in time big misstatements inactual practice. So it is the most urgent question to transfer the advanced auditing theory to the“productivity” in auditing practice.Under this background, this paper gives analysis of preliminary application of risk-orientedauditing mode in actual auditing practice, to provide some reference for the implementation ofrisk-oriented auditing in actual practice in the future. Firstly, this paper introduces the purpose ofthis topic, background and conception of risk-oriented auditing; Secondly, as the maincontribution of this article, it explores to the application in practice of risk-oriented auditingmodel through the case study of ZH Group; Thirdly, it summaries the benefits to use modernrisk-oriented auditing with the study analysis in chapter3, and discusses the questions in practice,e.e. the requirements to CPA and CPA firm etc., gives our solutions as well. Finally the papergives our conclusions, some limitations and inspirations.