China's Environmental Audit Risk Model Construction And Risk Response Strategies

China's environmental situation is not optimistic, irrational production activities and consumption exacerbated the further deterioration of ecological environment. Implementation of environmental audit is the requirement work of China's environmental situation and protection. It is not only a measure of gross national product and need of considering production costs, but also the need of sustainable development strategies. With the premise of such conditions, this thesis evaluated and researched deeply every aspects of China's environmental audit risk, made specific comments and suggestions, in order to get some innovations and breakthroughs on the basis of predecessors' study results, and make the theory more systematic, and the practice more rational. There are six parts in the thesis as follows:The first part is introduction. It has discussed the research background and significance; summarized and evaluated the main achievements of others' research in this field and made some comments on them, and point out its merits and defect such as not systematic, lack of consensus on many issues. This thesis proposes the content of study, method and innovation to the inadequacies of existing research, while defining the scope of this study.The second part discusses the basic theory of environmental audit risk issues. It described the theoretical basis origin of the environmental audit, the content, the nature and functions; on the basis of the modern risk—based audit thought and its own features, it interpreted environmental auditing risk and its characteristics from generalized angle, and laid a theoretical basis for the subsequent research. The third part shows the status of environmental audit risk and problems. It analyzed the causes of environmental auditing risks, its status and problems (including the problem in the appendix), and got the conclusions that establishment of environmental audit risk model and implementation of risk response strategies are necessary. Appendix-the survey results of the status of Environmental Audit practitioners, the theoretical research paved a way for deepen understanding and overall grasping the environment audit.The fourth part describes construction and application of the environmental audit risk model; it is the focus of this article. This section has considered factors before building the audit risk model, namely, the basic elements of environmental auditing, the audit process and sustainable development requirements; and then built the risk model and analyzed the components of the system of "Environmental Audit Risk=external risk (concept risk×procedure risk×political risk×environmental risk)×implementation risk (under the conditions of the acceptable environmental audit risk, material misstatement risk×environmental inspection risk) "; Finally, empirical analysis has showed that the specific application of the risk model.The fifth part submits the coping strategies of environmental audit risk, namely, to undertake environmental audit risk model, we have established an early warning system and managed its risk. The former study included risk identification, risk measurement and risk decision-making; while the latter included the meaning and methods of risk managements, which were risk transfer, risk prevention, risk control, risk avoidance, and others.The sixth part is the conclusion. It pointed out the basic conclusions of environmental audit risk, the limitations of study and future research directions and ideas.