Research On The Theory And Application Of Modern Risk-oriented Audit

From the beginning of 1990s, rapidly changing of external environment of corporations, more complicated economic vocation and inceasing management fraud have brought more difficulties to auditors. It's hard to apply traditional risk-oriented audit to discover management fraud, because of its character of internalization and reductionist. Audit expectation gap expanding, people became suspicious of the ability of auditors and the value of audit and auditors are faced with higher audit risk. Some large international auditing firms have realized the necessity to develop new audit methodologies and began to cooperate with acedemic authorities to study and carry out modern risk-oriented audit. After more than ten years'exploratin, modern risk-oriented audit becames more and more mature. IAASB, America, England, Canada and China established or revised a series of audit standards based on modern risk-oriented audit. Presently, disagreement about modern risk-oriented audit still exists. In this background, this paper tries to discuss modern risk-oriented audit in view of theory and in view of audit standard, analyzes the problems that may occur during the application of the new audit methodology in China and the author hopes this paper will help the implementation of modern risk-oriented audit in China.Except introduction, the construction of the paper is as follows:Chapter One introduces the changing of audit methodology, especially traditional risk-oriented audit. The author takes the case of"Yinguangxia"to demonstrate the disadvantage of traditional risk-oriented audit. Chapter Two analyzes modern risk-oriented audit in view of ecology of corporate governance, audit risk, ERM and reconstruction of audit risk model. In the end, the author compares modern risk-oriented audit with traditional risk-oriented audit. Chapter Three introduces the new audit standards of IAASB and China connected with the theory of modern risk-oriented audit and compares the difference of modern risk-oriented audit in view of theory and in view of audit standard. Chapter Four analyzes the inevitability of the application of modern risk-oriented audit in China, discusses the obstacles during the application of the new methology and gives suggestions.The main academic contribution of this dissertation is that the author analyzes the utilization of the theory of modern risk-oriented audit in audit standard of IAASB, compares modern risk-oriented audit in view of theory and in view of audit standard,...