Research On Application Of Modern Risk-oriented Audit Approach In A Accounting Firm

With the changing environment of social and economic, the traditional auditing model is not suited for the more and more complex economic environment, the new audit model—modern risk-oriented audit approach has come into being. The application of modern risk-oriented audit approach is a new concept of practice, which leads the direction of the future development of the world’s audit model. As a very new model of the audit method, its guiding ideology is the strategic view and system view. The modern risk-oriented audit is a kind of the assessment of the risks of material misstatement, to detect and respond to risk for the main line, and finally the audit risk can be controlled in an acceptable range for the target of a new auditing model. The core idea of modern risk-oriented audit model is that auditing risk is mainly derived from the management risk of the enterprise. Through the understanding of the business risk, as well as the audited units internal control designing, operation, auditor make comprehensive evaluation and measurement for further audit procedures. The audit mode is an audit concept innovation of audit model based on traditional account and system-based audit.At present, the books and papers of most of the modern risk-oriented audit application in China is theory research. Especially, the application of the modern risk-oriented audit in accounting firm is very little. The article discusses the modern risk-oriented audit from the analysis of existing theory, of modern risk-oriented audit model. Through the specific analysis of basic audit process of the modern risk-oriented audit model and the use of modern risk-oriented audit model with the foundation of modern risk-oriented audit model countermeasure research. The study applies for the modern risk-oriented audit model in small and medium-sized accounting firms combine with a case. This article draws the following conclusions:Chinese CPA firms have demanded the implement of the modern risk-oriented audit, and have sufficient feasibility in practice. Modern risk oriented audit model have many advantages in allocation with the limited audit resource and measures of major auditing risk. Chinese small and medium-sized accounting firms can use modern risk-oriented auditing concept in practice, allocate reasonable with the limited audit resources, to find and measure the risk, to take targeted of measures to low the audit risk to acceptable context of the overall train of thought, combined with the traditional auditing methods, to improve the audit efficiency and the results of the audit in practice.