Research On The Application Of Modern Risk-Oriented Auditing In XZD Accounting Firm

Nowadays,with the rapid development of economy,enterprises are required to disclose financial information fairly.Under the drastic fluctuation of market economy,enterprises will whitewash their financial statements because their performance fails to meet the expectations of investors,which increases the risk of misreporting financial statements.In order to issue appropriate audit opinions on financial statements,the audit model has changed from traditional risk-oriented model to modern risk-oriented model.In the modern risk-oriented model,auditors need to analyze the inherent risks of the auditees,not only to understand the internal environment of the enterprise,but also to understand the external environment,to identify the risk of misreporting.Modern risk-oriented audit model is to control audit risk within a reasonable range under the condition of rational allocation of audit resources.In the 1980 s,foreign countries began to study the modern risk-oriented audit model,and now a complete theoretical and practical system has been formed.In recent years,auditing standards require accounting firms to implement modern risk oriented auditing in an all-round way in China.By virtue of their professional qualities,large domestic accounting firms have established a matching audit model.Due to the lack of information technology support and the need to introduce complex talents,it is difficult for domestic medium-sized accounting firms to effectively use the modern risk-oriented audit model in the annual report audit.This paper expounds the evolution of audit model,the framework and advantages of modern risk-oriented audit model,and the research status at home and abroad.Due to the late start of China’s research,the lack of auditors with Chinese characteristics,professional leaders and low professional ethics,the development of modern risk-oriented auditing in medium-sized accounting firms is uneven.Taking the medium-sized accounting firm XZD as an example,this paper firstly analyzes the operation status,organization,position of XZD accounting firm and the audit model adopted in the annual report,and then chooses the medium-sized accounting firms which undertake the most annual report audit of the state-owned medium-sized enterprises as the case.This paper elaborates the traditional risk-oriented auditing process currently adopted.Finally,combining with the guidelines of CPA auditing standards in China,a modern risk-oriented auditing model suitable for XZD accounting firms is established.The model data comes from the annual report of WD Company,a medium-sized state-owned enterprise in 2016,and WD Company is a provincial state in coastal economically developed areas.Some enterprises,the company engaged in coastal beach,complete internal control,the case for the domestic medium-sized accounting firms to improve the audit methods put forward new ideas.In this paper,the theory and data combination model,through the theoretical framework to build a model,supplemented by data support,detailed description of the meaning and the main points of each layer model.