Application Of Stakeholder Theory In Risk-based Audit

Recently,in the domestic capital market,the collective thunder of the white horse stocks has ushered in a small climax.Audit failures have occurred frequently.Accounting firms have been investigated successively.CPA urgently need to expand their perspectives to deal with audit risks and new environments.Under the modern risk-based audit model,only by grasping the risk of material misstatement can we control the audit risk.In order to expand the CPA's perspective and better prevent audit risk,this paper proposes to apply stakeholder theory to risk-based audit,take benefit-oriented approach,and use stakeholder as the entry point to analyze the risk of material misstatement.In order to explain why and how to use stakeholder theory to guide the implementation of risk-based audit,this paper adopts a single case study method,selecting the case of Kangdexin's fraud,focusing on the possibility and reason of the risk of material misstatement,and standing on the position of CPA.The announcement is the main data source.By analyzing major audit matters,identifying stakeholders,analyzing the size of interests,and analyzing audit risks from the perspective of stakeholders,it accurately identifies the risks of material misstatement and embodies the significance of the perspective of stakeholders in identifying areas of material misstatement.This paper concludes that the use of stakeholder theory can help CPA expand their perspectives in risk-based audit,identify risks of material misstatement.In the analysis of risks of material misstatement,CPA should focus on the interests and stakeholders,especially important stakeholders.This paper uses stakeholder theory to deal with the reality of frequent audit failures,provides new ideas and solutions for CPA to improve the effectiveness and efficiency of audit,and provides a reference for them to expand the audit perspective.The main contribution is to expand the vision of CPA,fill the gaps in the research field of stakeholder theory and risk of material misstatement,respond to the requirements of risk-based audit standards,clarify the theoretical basis of this audit approach,and provide a case analysis with Chinese institutional background.