On The Analysis Of Certified Public Accountants Auditing Procedures

In recent years, since the developments of technology and economy in the whole world have sharpened the competition, enterprises are faced with enormous business risk and uncertainty. Thus, people put high request on Certified Public Accountants, direct lawsuits against auditors break out constantly. However, on the one hand, the auditor has to put into enormous manpower and materials since the expanding of enterprises in order to evade the risk, while on the other hand, drastic competition among accounting firms results in constant reduction of auditing fee. In order to go out of the awkward situation and raise the efficiency and effect of the audit, analytical procedure is popularized day by day as a kind of technological method.Analytical procedure runs through all the auditing courses, it is a full course method of assessing material misstatement risk. The reasonable exertion of analytical procedure can help Certified Public Accountants draw up an economical and available auditing project between the quality and the cost so that it is easy to plan audit work and guide the allocation of auditing resources to make the audit work efficient and effective.Presently, Risk-oriented audit approach is popular. One of its foremost characters is that it pays attention to appling analytical procedures, in order to identify the potential risk of material misstatement. Our new China Standard on Auditing No.1313——Analytical Procedures incarnates Risk-oriented audit idea,emphasizes that analytical procedure should be used by auditors as substantive procedures while it is used as risk assessment procedures to obtain an understanding of the entity and its environment and as an overall review of the financial statements at the end of the audit. We will first discuss essential theory on analytical procedure, and later combine it with our new standard on auditing to explore how to apply analytical procedures in detail.