| With the rapid development of economy, the requirements of audit, quality and quantity, which promotes the sustainable development of the audit. Original audit model can not met the social demand for audit, and modern risk-oriented audit came into being with the constantly development of the theories. China’s latest auditing standards promulgated in 2006, which indicated that China began to implement modern risk-oriented audit models. Auditor judge the risks of companies, evaluate the risk control, determine the residual risk, execute additional audit procedures, and improve the audit efficiency and effectiveness under the modern risk-oriented audit.In this paper, the main focus is the relationship between pending litigation and audit opinion under the modern risk-oriented audit. This article is divided into six parts. The first part is the introduction, including the research background, research significance, research methods, research content and framework, the innovation points. The second part is the theoretical foundation and literature review, including the definition, theoretical analysis and literature review. The third part is the foundation of modern risk-oriented audit framework. Based on the existing modern risk-oriented audit model, the article build the research framework by introducing the pending litigation factors. The fourth part is the statistics of pending litigation and the audit opinion type, including statistics of sample, audit opinion type, cause introduction, defendant and plaintiff. The fifth part is case study of CEC CoreCast Corporation Limited, including the process of case, risk analysis under the research framework in chapter 3, and the evaluation of the audit opinion. The sixth part is the revelation and expectation. The main innovation of this article is to use case studying the relationship between the pending litigation and non-standard audit opinions. This will guide the practice work. |
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