Research On Audit Risk Of DH Certified Public Accountants

From the well-known Enron, Worldcom event to the 2014 Tianhe chemical Event questioned by the public, Many listed company’s financial problems and the more and more complicated audit environment bring huge risk to the accounting firm’s audit service. On the one hand, this is because of the deliberate fraud made by the audited units or the the risk of material misstatement caused by the incomplete internal control systems of the risk; on the other hand,it is due to the incompetence of the auditor in the accounting firm,thus bring the risk of detection in the practice process of the audit program and execution.the audit failure,caused by the over high level of audit risk that the accounting firms have to faced with,put bad influence on the whole auditing industry. How to effectively identify audit risk existing in the accounting firm practice and how to use effective means to resolve or transfer audit risk to reduce the auditors and accountants’ jointly and severally liable so that it can ensure a healthy development of the auditing profession has become a difficult problem in front of ever auditor.This article selects DH Accounting Firm as the research object.DH Accounting Firm,ranked top 10 in the accounting industry, has certain typical and representative.by describing the present situation of audit risk of DH Accounting Firm to analyze the formation reason of audit risk;by describing the present situation of audit risk the paper then analyzes the formation reason of audit risk.this paper put forward some suggestions to the problems mentioned above in order to help DH accounting firm reduce the audit risk.This article also has a deep meaning for the widespread audit risk problem in audit industry. This article is writen to put some useful suggestions to help the accounting firm effectively avoid the audit risk in the future work.This paper is divided into six parts.The introduction part mainly elaborates the research background, research significance and the research purpose of this article,also it introduces the research methods and the framework of this article.The second part explains the related concept of audit risk,including the definition 、characteristics and elements of audit risk,and it provide theoretical guidance for the following analysis of audit risk factors in DH accounting firm. The third part mainly introduces the DH accounting firm’s audit risk at present.The fourth part is the focus of this article.this part analyses the reasons of the existence of audit risk from the direction of both inside and outside. The fifth part put forward countermeasures of reducing audit risk for DH accounting firm.The six chapter is the summary of this article.