Research On The Implement Of Risk-Oriented Audit In China

As series of recent frequently break out of audit failure, risk-oriented audit emerge in the social factor of offsetting the widening expectation gap. The most remarkable characteristic of risk-oriented audit is: It bases on analyzing and appraising the audit risk systematically. And taking the starting point, it formulates audit strategy and the diverse audit plan which adapts with the enterprise condition, considering the risk passes through to the entire audit process.The thesis Begins with a description of the deep level reason of the audit risk separately from the aspect of economical and the social environment, profession supervising and managing environment, system environment, the thesis analyses. Beginning with a description of audit risk model evolution, it elaborates the background of the emergence and development of risk–oriented audit. And it led to the discussion of legal and moral risks of risk-oriented audit. For cost-effectiveness considerations, Risk-oriented model to allow accounting firms and CPA audit in its level of risk that can withstand, omit the substantive part of the regular testing procedures. If legal mechanism is not sound in the environment, risk-oriented audit may induce CPA do not abide by the professional ethics in order to save costs at the expense of audit quality. To implement risk-oriented audit model, civil liability reform of the judicial system will be appropriate.The implement of Risk-oriented audit in China, will have a profound impact on the organizational of CPA firms, development of CPA industry, the improvement of independent auditing principle, the development of CPA firm quality control and the audit approach. The modern Audit Risk Model provides us an approach for using Risk-Oriented Audit. How to appraise and control audit risk has already became one of important questions we Chinese CPA should face up to Risk-oriented audit, in essence, is a fraud audit. And corporate fraud cases are for corrupt management invalid internal control mostly. At present, most fraud cases of enterprises are because of the fraud of management and the invalid internal control. Imperfect corporate governance structure directly led to the increased risk of auditing listed companies. Risk-oriented audit should pay attention to corporate governance and fraud.The risk-oriented audit approach does not only change the approach but also change the traditional concept of the audit. The author carry the related question on the ponder. In view of the problems that exist or may face, the author provides corresponding policy recommendations such as Industry Specialization of CPA.