The Role Of Modern Risk - Oriented Audit

In this paper we describe the detail process of the annual audit for one company in continuing three years. The traditional risk-based audit model was adopted in the first year and a clear opinion audit report was issued with the effect of the audit model; in the second year, audit firm was asked to conduct audit under modern risk-based audit method however, lacking of enough training and appropriate understanding of the new method, the audit procedure carried in the year was only made a copy of the one did in last year; in the third year, modern risk-based audit method is adopted strictly in the annual audit, auditors conducted the whole audit process in compliance with the new model. With the effect of the new model and the due diligence, auditors noted significant misstatement in the financial statement and issued a qualified audit opinion accordingly.The above study reports that the audit model did have an impact to the audit process as well as the audit opinions. Domestic audit firms should noted following key points in the process of changing audit model: give enough and qualified training to auditors for their better understanding of the new audit method; remind auditors to keep diligence in their work and follow the standard of audit exactly; avoid audit risk sufficiently and effectively, drive the development of auditing.