Discussion On The Application Of Modern Risk Oriented Auditing In CPA Firms

Audit mode is an important issue in the theory and practice of auditing,modern risk oriented audit can be said to be in the transaction based auditing,system based audit and the traditional risk oriented audit results and innovation.In recent years the domestic and foreign disclosure of audit failure cases,the basic hypothesis of traditional risk oriented audit is not reasonable,so even if the CPA in the audit plan to make the greatest efforts,but the evaluation of audit risk,inherent risk and control risk are artificial,credibility is not high.Secondly,the traditional risk oriented audit with management system theory,can not find the material misstatement of management override of internal control on the financial statements.It is only concerned with the enterprise's internal control,CPA can obtain sufficient and appropriate audit evidence,so there is no among internal factors between the full attention of enterprises and external environment and enterprise relationship.In this case,easy to make a mistake.Finally,traditional risk oriented audit cannot be reasonable allocation of audit resources.It is essentially is a kind of top-down audit mode of thinking,which requires in the audit work to face all above,a waste of resources.It also forced the audit theory and practice to find the new audit mode,so the modern risk oriented audit came into being.Bridging the gap between expectations of the audit responsibility,reduce audit risk will fall on the modern risk oriented this new audit audit ideas.Modern risk oriented auditing is the inevitable trend of modern audit development,the mode of auditing theory and Have a profound influence in practice.But at present our country of the new audit mode,in terms of understanding and application have a serious shortage,many accounting firms are still used in practice is the traditional audit model.Therefore it is necessary to combine the specific case,discuss the specific application of this audit mode in practice.The modern risk oriented audit with the previous audit mode of the most significant difference lies in the audit unit in a three-dimensional environment,through all-round observation to analyze factors of the sustainable operation of enterprises.To analyze and evaluate the audit the material misstatement risk level from internal and external aspects,considering the business risk of the clients to risk assessment of the enterprise itself.The CPA audit practice using modern risk oriented audit,not only to have a solid foundation of professional accounting,auditing,but also has a corresponding financial management,enterprise management or related industry knowledge,so that it can graspthe business situation in a more ambitious perspective in the implementation of the audit business,a reasonable response to different categories according to the modern risk.The risk oriented audit requirements,audit objectives are focused on discovering the risk of material misstatement,according to occupation professional judgment to determine the level of importance,and the occupation should be suspected from first to last throughout the entire audit process.At present,the application rate of risk oriented audit is still in a low level,only a small number of large firms in the exploratory trial,most firms still implement the traditional audit model audit procedures in the audit,modern risk almost no real sense to guide the implementation of the audit.Therefore,in-depth study of the application of modern risk oriented audit model in the audit practice,it is very necessary,and has important practical significance.At present,the application of modern risk oriented audit is still at a low level,only a very small number of large firms in the trial practice,many accounting firms still implement the traditional audit model audit procedures in the audit practice,rarely implemented in the true sense of the modern risk oriented audit procedures.Therefore,in-depth study of the application of modern risk oriented audit model in the audit practice,it is very necessary,and has important practical significance.This paper selects a new case to Lixin audit geeya technology as an example,trying to through a detailed analysis of the actual audit case,to explore the status quo of modern risk oriented audit in practice.This paper begins with the introduction of research background and the significance of the relevant literature is reviewed,and summarized the research ideas and methods.The second chapter summarizes the basic this new method to the necessity and feasibility,pointed out that the modern risk oriented audit is a scientific and advanced auditing methods lay the theoretical foundation for the following research.The third chapter mainly introduces specific cases make audit,including Lixin Accounting firm and audit unit geeya situation introduction As well as the design and arrangement of specific audit procedures,the audit of the project by the Shenzhen branch,so the concrete introduces the related situation of Shenzhen.For the internal control,especially on the audit quality control,risk control system in detail.Prepare for the analysis of the case below.The fourth chapter analyzes the exposure the case lixin problems and corresponding causes,including huge false prepayments caused no doubt,failed to find the money to pay attention to the amount of the tax rebate inflated,and abnormal income and so on,including prepayment audit procedures are not complete,the abnormal related partytransactions to detailed investigation,no abnormal analysis of financial data,at last the chapter proposes some suggestions for improvement,such as strengthening the analysis of application in audit,pay attention to the risk assessment of the audit project The accounting firm should make the necessary measures and so on.