The Study Of Usage Of Audit Risk Model According The Risks Of Material Misstatement

For the traditional audit risk model has increasingly exposed its weakness, IAASB released and revised the related standard in October of 2003, release the new audit risk model, request the auditors to carry out audit procedure and assess the risks of material misstatement at the financial statement level, and at the assertion level for classes of transactions, account balances, and disclosures during the process of auditing, and assurance and carry out further audit procedures, decline the detection risk to the acceptable low level. For this great development of the audit risk model, it's necessary to analyze and study it systematically in theory, make beneficial discovery for the application of the audit risk model according the risks of material misstatement in the auditing of China.On the foundation of referring to the former scholars' research, this thesis begins from introducing the background and theories of the great development of the audit risk model, elaborates on the content and form of the audit risk model according the risks of material misstatement systematically, evaluates the main advantages of this model objectively, analyzes the total influence of the development on the audit procedure and the concrete process that applying the audit risk model according the risks of material misstatement in the auditing. On the other hand, for helping the auditors use the model correctly in working and attain the aim to lower audit risk, this text has discussed the strategy of controlling the risks of material misstatement from audit corpus, audit customer, audit method and audit proof etc., constituted the complete method system of applying the model. On this foundation, this text has discussed the advantage of the current audit environment for applying the new audit risk model and pointed out the disadvantageous aspects of using the model in the auditing, then gives the specific suggestions.The research of the audit risk model is one of the core links of the research of the modern audit of risk-direction. This thesis is hoped through the research of the key problems abovementioned, discovery the concrete means for the Chinese auditors to apply the audit risk model according the risks of material misstatement, find out the scientific way to resolve the problems of the modern audit of risk-direction in theory and practice, thus create the condition for raising the quality and efficiency of auditing, economizing the resource of audit in China.