Research On Audit Risk And Prevention Of Accounting Firms

Our accounting firms as the core power of social audit is responsible for maintaining the social economic order and promoting the development of enterprise specification. With the continuous economic development, audit risk of accounting firm are also increasingly prominent. "The Event of KeLon" and "Crisis of China Stocks" means many audit failures occur so that accounting firms not escape its responsibility. Even the larger, more international business accounting firms are also difficult to avoid. In the current complex new situation, strengthening accounting firm Risk Management, analysis audit risk, and to take effective measures to prevent the risk of audit has become a stage to enhance the core competitiveness of accounting firms, the firm promoting the healthy development of an important research topic.There are a lot of accounting firms in China, the type of them is various, and the whole industry is highly competitive. This paper systematically reviews the audit risk with the case of a large domestic accounting firm (hereinafter referred to as D accounting firm) under the guidance of the theory of audit risk, conduct a comprehensive analysis of audit risk that D accounting firm are facing with, give out some suggestion of preventing audit risk to D. Based on that, the paper figures out the problem that how could the accounting firm, the audited entity, the regulatory authorities promote the ability of audit risk prevention.The case study in this paper has a certain representation, the analysis and suggestion made in this paper could not only be used as the reference for D accounting firm to prevent audit risk, but also be useful for the overall industry. In addition, there are some positive significance for the development of CPA audit industry and the smooth operation of the social economy.