Z Accounting Firm Audit Risk Control Research

In trend of world economic globalization,deepening of reform and opening up policy in China,economic and legal environment of China have undergone tremendous changes.Moreover,public awareness of law have been strengthened in the meantime.The variability and complexity of social and economic life increase the difficulty of social auditing,which inevitably leads to audit risk.With constantly changing of accounting firm system,accounting firms and certified public accountants have become the main undertakers of audit risk.The top concern of all accounting firms in order to survive and develop is the risk control issues.The aspects are concerned that how to effectively identify the audit risk;how to use effective means to resolve or transfer the audit risk,to reduce the joint liability of auditors and accounting firms,so as to ensure the benign development of audit industries are the challenges for audit.In this paper,the author summarizes the research of amount of literature.This paper firstly introduces the definition and characteristic of audit risk,and expounds the present risk situation of Z Accounting Firm.It also analyzes the factors of audit risk from material misstatement and detection aspects by Audit Risk Model,and provides appropriate control measures of effective control of the audit risk according to the specific reasons for Z Accounting Firm.