Application Research On Modern Risk-oriented Audit Of Listed Companies

Listed company is one of the important groups that promoting economic development. It is also the important carrier to keep the development of the securities market healthily. Certified public accountants’major customers come from the listed companies. However, CPA lost credibility gradually because of the frequent management fraud of listed companies, which caused the generation of the modern risk-oriented audit mode. It is urgent to make sure how the CPAs reveal the management fraud effectively by the modern risk-oriented audit.On the basis of the strategic management theory and the fraud triangle theory, this paper introduces the concept of modern risk-oriented audit and the management fraud. Then this paper makes the literature review of the management fraud motivation, fraud means and the effectiveness that the modern risk-oriented audit revealing management fraud. Compared with the traditional risk-oriented audit, the superiorities of modern risk-oriented audit showed up in revealing the management fraud.In order to revealing the management fraud, the CPA should know well of the motivation and the means of the management fraud. Based on the data, which comes from the 2006-2013 A-share listed companies of punishment announcement of the China Securities Regulatory Commission (CSRC) and the GTA database,421 listed companies have been chosen as samples. Then, I find the management fraud of listed companies’ motivation, types and the means by the means of the statistical analysis.Based on the modern risk-oriented audit mode, this paper constructs structure framework of auditing management fraud. To beginning with, the CPAs assess the risk of the management fraud following with the process. In addition, the CPAs make overall response for the risk of material misstatement caused by fraud. Furthermore, specific audit procedures are carried out. Last but not least, the CPAs implement the follow-up audit process. Finally, this paper put forward the measures in terms of the CPA profession external and internal. I hope that it will be useful for pushing the modern risk-oriented audit to be used on revealing the listed companies’management fraud.