Research On Auditing Risk Control Of Accounting Firms

The rapid development of China's economic market in recent years,domestic companies have also shown rapid expansion,many companies to meet the growing business scope to raise the demand for capital,managers choose to inflate assets or profits to whitewash the financial statements.However,as the CSRC's supervision and punishment of accounting firms continues to increase,the audit risk control issues of the firm are pushed into public view.In the middle of 2017,ShineWing Certified Public Accountants,Zhongxing Hua Certified Public Accountants Co.,Ltd.,and Lixin Certified Public Accountants Co.,Ltd.were sentenced by the China Securities Regulatory Commission for penalties for uncontrolled audit risk.Although the problem of out-of-control audit risk originated in the enterprise,the certified public accountant responsible for auditing did not find many problems in the audited entity for some reason,and finally gave an audit report with inappropriate opinions.The main reason why accounting firms have increased their auditing risk in recent years is precisely because of this.The reason why the accounting firm as an independent third-party auditing agency should diligently and prudently safeguard the market economy is that one of the important responsibilities it bears is economic supervision,and an appropriate audit report should be issued during the auditing work.Therefore,when the firm undertakes auditing business,it should effectively control the audit risk and fulfill the important mission of maintaining a stable development of the market economy.This article is based on the audit risk in the audit risk model,based on the theory of audit risk control and the theory of principal-agent theory and audit evidence.It uses Lianda Certified Public Accountants as a research object for the case of out-of-control audit risk,and analyzes it against Liancheng Orchid Co.,Ltd.The reasons for the company's audit failure include auditors' incomplete assessment of corporate audit risk,internal management control of accounting firms and other issues,and finally raising the audit risk prevention and control strategy of accounting firms.Firstly,from the perspective of material misstatement risk,accounting firms should strengthen their risk awareness when undertaking business acceptance.CPAs should comprehensively measure and evaluate the accounting environment of the audited entity after undertaking corresponding business commissioning,and strengthen the professional competence of auditors;The auditing firm should improve the internal control system of the firm,conscientiously resist unfair competition in the auditing industry and strengthen the external environmental supervision of the firm.