Risk-oriented Audit Under The Research Of Risk Of Material Misstatement

Due to the traditional audit risk model exposes its flaws, international auditing standards to introduce new audit risk model of audit risk = risk x detection risk of material misstatement, the new standard compared to the old standards, the most important is the risk of material misstatement, and before the audit of the financial statements are free of material misstatement possibilities. In the new guidelines, the material misstatement risks instead of sum of inherent risk and control risk, but from the perspective of enterprises as a whole, starting with the operational risk, risks of material misstatement at the core, from a strategic point of audit activities carried out from top to bottom, this is a substantial step forward. Thus, in the audit practice, for overall reasonable assurance that the financial statements are free of material misstatement, CPAs can focus, through systematic evaluation and strategic analysis concluded that the risk of material misstatement, by the specific audit procedures carried out by a central planning and implementation. And in actual audit work in the, major wrong reported risk of recognition, and processing is audit business of focus, and in actual of audit work in the, on it of recognition, and assessment lack system of method, paper in through on major wrong reported risk established effects factors set, determines effects factors of weight, recognition out was audit units exists major wrong reported risk of key field, on recognition out of key field for assessment, last according to assessment results take corresponding of processing method.Recognition model based on material misstatement risk is one of the key steps in this article, hope that through the study of recognition model in this paper to improve the material misstatement risk recognition and processing of the application in our country, so as to improve the quality and efficiency of audit work of our country.