Research On The Cost Management System Of Modern Risk-oriented Auditing Based On ABCM

With the continuous development of economic, the expansion of the company’s business, financial and accounting information changed gradually, auditing is becoming increasingly important. Any economic activity pursues the smallest cost to get the most benefit, for auditing is of no exception. A new auditing model----modern risk-oriented audit developed with new economic policy and legal environment, its own particularities and the implementation status of audit mode lead the particularities of the cost management of modern risk-oriented audit and the necessity to be orderly managed.Activity-based cost management (ABCM) provides a new way of thinking for cost management of modern risk-oriented audit, put activity-based cost management thinking into practice of cost management of modern risk-oriented auditing, established modern risk-oriented auditing of cost management system from the perspective of ABCM in order to reduce audit costs, enhance the value of audit products and the core competence of the auditing organization.This paper focus mainly on certificated accountant audit (social audit) cost problems, refer to much literature information, use the method of specification research, combined auditing, management, managerial accounting and cost accounting knowledge, use activity-based costing management (ABCM) theory in the whole process of modern risk oriented audit, divide audit cost into four parts:cost budget, cost calculation, cost control and cost assessment. This paper is different from traditional simple calculations and control of the auditing cost, or simply compare control method of audit costs under different auditing models, present my own views on how to implement cost management of modern risk-oriented auditing activities, make the construction of cost management system of modern risk-oriented auditing based on ABCM.The first part of this paper describes the background and research meaning of the paper’s theme, and described the research status both at home and abroad in detail, leading to specific analysis of the paper; the second part is the based theory, firstly describes how modern risk oriented audit is produced, its connotation and features, secondly describes audit cost’s concept and classification, the features of modern risk oriented audit, thirdly simply describes the connotation and advantage of activity-based costing(ABCM); the third part explained the basic thought, target and principles of the cost management system of modern risk-oriented auditing based on ABCM; the fourth part make the construction of the cost management system of modern risk-oriented auditing of based on ABCM. this part is divided into four aspects:cost budget, cost calculation, cost control and cost assessment; The last part make a summary of the whole paper, pointed out the paper’s innovation points and insufficiency, and put forward main research direction based on this paper’s research theme in the future.The cost management system of modern risk-oriented auditing based on ABCM aimed at seeking a new way by the use of activity chains thinking, helps social auditing body (CPA) implement modern risk-oriented audit effectively. Try to control auditing risk and be capable of controlling auditing costs and improving audit returns, enhance the firm’s competitiveness.