The Study On The Influences Of Risk Preference In The Risk-Oriented Auditing Model

With the change of social and economic environments and with auditors' deepening perception of the nature of auditing itself, auditing, as a technical means, has experienced three models in sequence: accounting number-oriented auditing, internal control-oriented auditing, and risk-oriented auditing. The prevalent malpractices in financial and accounting reports in many countries since 1970s make clear the limitations of the traditional auditing model. Developed western countries represented by the United States attempted to breakthrough the traditional auditing model in specific tasks and develop a new auditing model centered upon risk assessment in order to guarantee and further improve the quality of auditing results. This is so-called risk-oriented auditing model (ROAM).The risk-oriented auditing model is mostly characteristic of its systematic analysis on and evaluation of auditing risks and its consequent formulation of auditing strategy and diverse plans consistent with the company or enterprise being audited, with risks taken into consideration all through the course of auditing. So far, the Ministry of Finance and the CPA Association of China have organized some experts and scholars to investigate the practices of risk-oriented auditing model and issued The Professional Standards of Independent Auditing. The existing studies on ROAM hypothesize that CPAs are rational and will evade risks in case of encounter. But technically speaking, it is difficult for CPAs to detect frauds, so a new auditing technique is required to help them improve their effectiveness. Scholars at home and abroad do research in the ways to improve auditing more from the perspective of technology. They are also exploring and developing various technical models for auditing. In literature, auditing models based on control risks, business risks, fraud risks, and governance risks are suggested. Corresponding auditing procedures are also put forward to guide auditors in practice.This dissertation argues that "orientation-risk" is the very beginning of ROAM and auditing-risk is just the end of the relative studies. All "risks" are auditors' guides that can bring in auditing-risk. The index of risk-orientation...