The Application Of Modern Risk-Oriented Auditing Model To Tax Audit

As an important part of national revenue, tax plays an irreplaceable role of revenue distribution, resource optimization in the national economic development. With the gradual development of market economy and increasing expansion of tax, non-compliance phenomena grow in great number. Tax audit serves as an important means to guarantee the steady growth of tax revenue and to prevent pervasive tax evasion in enterprises. Furthermore, it holds the key to the guarantee of fiscal revenue and improvement of compliance to tax payment for enterprises. However, as the tax audit is being widely implemented in key tax units, a hold of flaws exist in traditional tax audit methods such as the difficulty in fully and accurately finding out corporate tax loopholes, high degree of integrity and precision as to corporate financial data, lack of systematic and standard working model, lack of effective control on the whole process of audit risk as well as failure to effectively prevent from law enforcement risks for relative staff. All these make it difficult to keep up with requirements of modern tax audit. The information asymmetry is becoming increasingly prominent due to the progress of economy and technology, the popularity of enterprise informationization and the increasing complexity of the business environment, which brings about greater challenges and raises more demands for tax audit.At present, risk-oriented audit model has become the mainstream in the development of financial audit. Tax accounting and collection, closely linked to finance, is based on financial accounting, and audit shares a series of similarities with tax in nature, the process and methods, thus making it feasible to introduce the risk-oriented audit model to the tax audit. The model has been put into practice and turned out fruitful in developed countries such as America and Australia. The application of risk-oriented audit model to the tax audit can be made possible from perspectives of industrial background, operating status, the trend of profit variation. In this way, enterprise tax risks and loopholes can be discovered in an overall and targeted way with the efficiency of tax audit effectively improved and audit risk reduced, ensuring the quality of audit work.Starting from the significance of new tax audit model, this paper clarifies the connotation of such theories as tax audit, tax risk and modern risk-oriented audit model, and expounds the current state of audit work. Through the analysis of the existing problems in the current tax audit, it has proved necessary to adopt the risk-oriented audit model in tax audit. Secondly, the specific procedures and methods will be described and risk evaluation primarily illustrated. In the process of adopting risk-oriented model in the phase of case selection, the evaluation of corporate exterior risks can effectively boost accuracy of audit case selection. After confirming the audit targets, the analysis of underlying tax risks in such aspects as sale and collection, purchasing and payment, investment and financing will improve the comprehensiveness and effectiveness. Finally, combined with the case study, the detailed application of the risk-oriented model in tax audit will be displayed, providing useful references for better use of tax audit model in tax authorities.