Accounting Firms’ Audit Risk And Evasion

Audit risk is an important concept of modern audit theory in the context of gradual establishment of the socialist market economic system, our country’s audit work is also becoming more professional, then people also pay more and more attention to the role of audit in economic life.On the other hand, because of the complexity of audit environment,the diversity of audit service and audit task, audit risk is increasing. In recent years, certified public accountants helping auditees financial fraud exposured in the society, which had a far-reaching influence on social economy. Repeatedly the case reflected the lack of moral ethics of certified public accountants, which warn certified public accountants should be abide by the professional ethics and integrity, and improve their work ability, in order to restore the public trust of accounting firm and certified public accountants.Firstly, this paper introduce the definition, form, characteristic and model of audit risk, then analyze causes of audit risk from the aspect of auditor, auditee and audit approach. From the aspect of auditee, auditee financial and accounting fraud occur frequently and internal control system of auditee is not perfect. Standing in the basis of auditor, the certified public accountant lack of audit independence, professional competence and experience. The limitation of the audit approach can also lead to acccounting firms’ audit risk. Then taking a accounting firm auditing the TC listing corporation as an example, this paper analyze audit risk and corresponding audit measures when accounting firm carry out audit work on the basis of impairment of assets. Finally through the analysis of the causes of audit risk,accounting firms should make some measures: to review the target customer and determine whether or not to undertake business, to improve the professional ethics and competence of certified public accountants, to choose appropriate audit approach, to standardize audit fees in the face of fierce competition in the auditing profession and to astablish a perfect internal control system within the accounting firm.