Research On Modern Risk-oriented Audit Approach

Since the end of 20th century, facing with frequent occurrence of finance frauds and audit failures in the world capital market, the large international accounting firms have developed modern risk-oriented audit approach with different names in succession, China have formally carried out 48 auditing standards on January 1st, 2007, and dedicated to pushing the new risk-oriented audit mode. To speed up consistency with international audit model, actively impel modern risk-oriented audit to be used in auditing practice in our country, and continually develop it and make it perfect, based on a great deal of materials and data, the thesis systematically researches generating and development, meaning and characteristics, procedure and method, application and countermeasure of modern risk-oriented audit.Firstly, the thesis considers that different audit environment bring different audit method: from accounting number-based audit to system-based audit, from traditional risk-oriented audit to modern risk-oriented audit, at the same time, the system theory and the strategic management theory provide important revelation and practical basis for the generation of modern risk-oriented audit. Comparing with traditional risk-oriented audit, modern risk-oriented audit develops the useful aspects and discards the useless aspects, it has more expansive meaning and extraordinary characteristics, truly reflects the concept of risk-oriented audit also, because it based on analysis of the enterprise strategy management, manage risk assessment oriented, then judges if the financial report has risk of significant misstatement. Later, the thesis describes the basic procedure of modern risk-oriented audit, and comprehensive discusses its executive method, that is, beginning with the analysis of strategic management at first, finding potential important strategic risk, identifying key business processes, then analyzing if this processes has reduced strategic risk, and simultaneously controlled its own risk, hereby it confirms if the financial report has residual risk, namely risk of significant misstatement. If exist, demands to deduce specific audit objectives, perform substantive test and make a conclusion of financial report's fairness. Finally, the thesis analyzes advantage and disadvantageous factors of modern risk- oriented audit applied in our country, and puts forward concrete solutions according to actual conditions.