Rebuild The Audit Detection Model Using The Fuzzy Theory

The result of audit is significantly influenced by audit evidence collected when planning the audit and the amount of audit evidence depends on the degree of detection risk. Therefore, when the assessment factors of detection risk are more objective and correct, audit costs and the risk of audit failure can be reduced. Thus, this paper aimed to design an audit detection risk assessment system that could more precisely assess detection risk, as well as to meet the request of the new standard of audit which emphasize the work center should be risk leading.We all know the audit risk model, but it is known as a ideal model not used effectively in practice. What’s more, auditors assess the audit risk in their own understanding of the company rather than specific data, which lead to the inaccuracy of the audit work. Form the uncertain characters of audit, we find an effective method to solve this problem, using the Fuzzy logic. It has created suitable mathematics for making decisions in uncertain environment including professional judgments. One of the situations is to assess audit risk.In this paper, first of all, the grounded theory is used to recognize59factors affecting detection risk mentioned in literatures and then employed the Delphi method to screen39critical risk factors agreed by empirical audit experts. Then, combine the fuzzy theory with the audit risk model to calculate the fuzzy numbers of audit risk. At last, giving an example to test and verify the effectiveness and accuracy of this paper’s method. Above all, this works well and has certain value to use in practice.