Research On Audit Risk Control Of XH Accounting Firm

In recent years, accounting firms are facing fierce competition. Accounting firms need to constantly adjust and correct the plan of their own development in order to cope with the current competition in the industry. China’s audit industry started later than the west. With the development of continuous economic, the audit has also got more and more social attention and government support. So it is an era full of opportunities for accounting firms; On the other hand, under the booming background, there are many urgent problems to solve for accounting firms. There were many industry scandals at home and abroad. Due to the Enron’s sudden collapse, the Arthur Andersen that was responsible for audit also went bankrupt. Zhongtianqin accounting firm qualification and 2 CPAs were revoked because of the Yin Guang Sha Event, and the Commission revoked the securities and futures-related licenses. These events made people concern and worry about CPA audit risk.Therefore, this is an era full of opportunities and risks for the accounting firm. How to control the audit risk, grasp development opportunities play important roles for small and medium sized accounting firms.XH is a local accounting firms, which is same as other small to medium sized accounting firm facing with neglect of audit risk. This firm with weak risk awareness, insufficient auditors qualified, lacking of scientific review and oversight. Researching on accounting firm risk control and improving the problems that faced by small and medium sized accounting firm can make the accounting firm make a more healthy, more long-term development.XH accounting firm is the study object of this article. Collect relevant information through fieldwork in XH. Analysis of the problem of audit risk controlling on the basis of the professional advice and previous literature. And Put forward countermeasures and suggestions to solve the problem on the basis of analyzing the reasons deep.There are some common problems in small and medium sized accounting firms, e.g. in terms of staffing, the degree of air control, audit procedures, and the auditor competencies, etc.Through in-depth studies on specific issues, analyze the reasons of the problems with specific environment. For example:review system in urgent need of improvement; audit approach limitations; lacking of audit staff training to improve. Finally I put forward some feasible suggestions to help the XH accounting firm to control audit risk. I also hope the suggestions can influence the other small and medium sized accounting firms...