The Research Of Risk-oriented Auditing And Its Application

Risk-oriented auditing model is based on the Theory of scarce resources, cost-benefit,strategic management and system theory;takes reducing auditing risk as the basic way, assessingrisk of significant misstatement as the main line, considering The objectives, strategy andbusiness risk that can lead to material misstatement risks. Risk-oriented auditing model is anauditing technique which takes the risk analysis and assessment throughout the auditing processand combine identified risks with auditing procedure, it improves auditing efficiency and auditeffectiveness. It is the product of adapting to the changes of auditing environment, auditingrequirement and suppliers’ own development.This article which is based on forefathers study takes the theoretical research method, thecomparative analysis method and case analysis to discuss the basic theory and application ofrisk-oriented auditing. This article is divided into five parts as follows： The first chapterintroduces the background of risk-oriented auditing, illustrates the historical inevitability ofrisk-oriented auditing model and reviews related research literature at home and abroad. Thesecond part elaborates the connotation, theoretical basis and conceptual framework ofrisk-oriented auditing. The third part elaborates the basic procedure and methods of risk-orientedauditing. The fourth part shows the application of risk-oriented auditing in our country andevaluates the feasibility of application through auditing information supply and demand. Thefifth part explains the necessity of the risk-oriented auditing in our country and summarizes theexisting problems combined with the countermeasures.