Research On The Applications Of Strategic Auditing In Financial Statements Auditing

The modern risk-oriented auditing method is being used for CPA financial statements auditing in China. The key of modern risk-oriented auditing is how to find the material misstatements on the financial statements. The necessity and feasibility that the strategic auditing is used on financial statements auditing are analyzed in this dissertation. This dissertation studied on the auditing procedure that "perspective of management" of strategic auditing is used for the financial statements audit through some theoretical analysis and a few case analysis. Firstly, the corporate environment and resources are analyzed. Secondly, a reasonable expectation of the corporation's financial position is given. Thirdly, it is compared with the financial statements. Finally, the material misstatements of the financial statements are looked for from the comparing difference. This dissertation studied on the procedure that "perspective of governance" of strategic auditing is used in the financial statements auditing. The formulation and implementation of strategy are analyzed, if the large shareholders control the company or the company governance structure is bad, the material misstatement is possible because of related-party transaction and fraud.