The Research On The Change And Consequence Of Auditing Risk Criteria

The auditing failure which resulted from the auditing risk has made the certified public accountant industry be fully criticized for a long time. Facing the succession of auditing failure and the social influence which bringing about from the auditing failure, how to keep watch and control the auditing risk becoming the important focus of the governments and the certified public accountant. In order to keep up with the public auditing expectation and improve the practice ability of the certified public accountant, IAASB and the industry of the world fasting the path to amend the audit criteria, and finally IAASB issued the four new auditing risk criteria at the end of 2003. And on the background of the international convergence of the audit criteria, our country also issued the new auditing risk criteria which wound be fit for our country on the base of the international auditing risk criteria. This gives me a chance to research on it.This paper considers the reasons of the change of the auditing risk criteria is not only the improvement of the auditing mode and the auditing technology, but also its change has the own deep-rooted economic factors. This article utilizes the economic consequence view to the change of auditing risk criteria, and proposes it is not only a kind of technical standard; because its change is the same with accounting standards and has the economic consequence, it become the game object of the interest group. And proposed the "latent profit" which revealed form the formulation process of the auditing risk criteria is the basic reason which all of interest group gambles, the process of which the interest group pursue the "latent profit" has contradiction and conflict of interest, In order to balance this kind of conflict as well as obtains the profit together, they should have a cooperative game and reach a effective agreement. So, the change process of the auditing risk criteria is the gamble process which the interest group continuously drive the auditing risk criteria from the low level to the high level. The change process is a mixed change process which includes inductive change and compulsory change. And then we utilize the performance of interest group to appraise the economic consequence which the change of the auditing risk criteria brings for the interest group, We also think in order to enact a fair and effective audit criteria, we should let all of the interest group take part in this change process and make the audit committee better, then we can do it.