Researches Into Modern Risk-orientated Auditing Practices

Social auditing is an important part for the development of our socialist market economy, especially for capital market evolution. Over 20 years in opening-up to the rest of the world, social auditing has made progress and played a vital role. However there is a distinct difference between our country and the developed countries in the aspects of independent auditing theory and practice. Therefore this article will made a systematic research into the modern risk-orientated auditing theories and practices in order to catch up with international advanced auditing measures and narrow the gap.This article will take a normative method in exploring the reasons why modern risk-orientated auditing occurs, what its theoretic fundament is, and as well as its theoretic application.For traditional auditing risk model, there exist inherent defects of traditional risk-orientated auditing in the fields of auditing theories and practices based on simplified cognitive model, auditors could not meet the needs of social economic development. Auditing professionals began to reconstruct auditing methods in 90s of 20 century and developed a new auditing- that is modern risk -orientated auditing method based on complicate auditing cognitive models, systematic theory and strategic theory, as well as operating risk. In the aspects of theory, this paper has made a research into the necessity of modern risk-orientated auditing, and the relationship between the modern risk-orientated auditing and traditional risk-orientated auditing in order to set up the framework of modern risk -orientated auditing theory and its application.In the aspects of practices, by means of modern risk-orientated auditing strategic risk in businesses were discussed, as were material matters. Afterwards links risks were involved, on one hand links risks were the result of strategic risk, on the other...