Risk Analysis And Prevention Of Audit Clients In National Equities Exchange And Quotations

The guiding ideology of modern audit had further developed from the system based auditing to the risk auditing.This shows that the auditing profession gradually developed to the direction of proactively identifying customer risk and controlling audit risk.The audit risk consists of three parts: the inherent risk,control risk and risk of checking.On the limited spot audit period,Certified Public Accountants carry out the audit procedures as many as possible to check and communicate the problems in the focused on areas,although it can effectively reduce the check risk of the above three factors through the collection of evidence so as to maintain the overall audit risk in the acceptable level,but there is still a significant possibility of the audit risk existence in non-key areas.At auditing practice,Certified Public Accountants often face a large number of cash transactions,how to confirm the authenticity of the cash transactions,or the company's suppliers are mostly persons who has non invoicing or difficulties to ask the tax bureau to issue the invoice,the authenticity and the integrity of cost is not easy to be confirmed;a large number of revenue and cost is included in error period and the original document is easy to be forged,how to confirm the real time of the business.When faced with these risks,it is not guaranteed that the audit risk can be reduced to an acceptable level only by the identification of key areas of audit and the implementation of as much audit procedure as possible.Because of different industries,different business models,different management ideas,different financial accounting basis,and so on.This article will compare the customer risk and its identification of the companies in different industries or declaring National Equities Exchange and Quotations and the general annual audit client,compare listed failed companies,study what kind of audit arrangements to take aimed at different particular ones,summarize and enrich the process of risk assessment based on the traditional risk assessment process system.Through the study it can be easily found that different customers of different industries or different audit purpose,the corresponding risk assessment procedures are different,it also shows their individual problems and the corresponding personalized risk assessment program selection.In the course of the study,due to the limited case data and individual audit experience is limited,also as everyone treat a customer with a situation,the risk assessment procedures or specific audit measures will be influenced by experience,understanding,habit,which will have different choices or get different results.Therefore,the results of this study may have certain limitations.In auditor's routine work,Certified Public Accountant should grasp a preliminary understanding of the customer risk situation through the implementation of auditing client procedures,based on the past experience and professional judgment ability,to make more flexible and effective audit planning and the corresponding audit response strategy.