Research On Applying Of Risk-oriented Auditorial Analytical Procedure

With the rapid development of China’s economy, enterprise scale is constantly expanding, social economic developments, technological advances, the world’s becoming more complex, economic environment is fast-changing, companies are facing increasing uncertainty, business risks is increasing, enterprises are facing unprecedented challenges. The problems of traditional audit analytical procedure were exploded: the increasingly complex business environment, the continuous expansion of business scales, auditors use existing traditional analysis program audit approach difficult to balance the efficiency of audit quality and audit, audit risk is difficult to control. On the one hand, in order to reduce audit risk, the auditors must conduct more detailed tests, which inevitably increases the cost and time of the audit; on the other hand, with the increasingly fierce competition among firms, audit fees continue to decrease, auditing firm benefits downward trend. How to reduce the audit risk, guarantee the quality of audit, improve the audit efficiency, these problems of which every modern auditor must face, need to be addressed. Analytical procedure came into being based on the audit needs.Firstly, this paper describes the current research on the background and meaning of the risk-oriented auditorial analytical procedure, make a brief overview of the analytical procedure. Secondly, starting from the theoretical study, the theoretical part of the risk-oriented auditorial analytical procedure is divided into basic theory part and applied theory part. At last, by linking the connection between theory and practice, take xx telecom company for example, using the analytical procedure to audit the xx telecom company’s 2013 financial statements for the planning stage, and found the lack of the practical use, and proposed improvements on the practical application.This paper demonstrates the scientific nature of the risk-oriented auditorial analytical procedure at the level of the theory, using the method of the risk-oriented auditorial analytical procedure, makes a detailed analysis of the case, demonstrated its feasibility. This paper analysis the risk-oriented auditorial analytical procedure for the process, and breaks which into several specific steps, combined with the method of financial analysis and non-financial analysis, to enhance the efficiency and effectiveness of audit, providing a valuable reference to the medium accounting firms and small accounting firms using analytical procedure.