Research On HZ Accounting Firm Audit Risk Control

In recent years, China’s audit industry has made great progress,audit risk also increases.Coupled with the research on the audit risk of a late start,CPA independence issue gradually being damaged more and more attention.Public reliance on audit reports continued to rise,but the legal profession and the accounting profession to define standards for audit responsibilities yet easy to reach a consensus on the CPA adverse judgment,audit risk will continue to increase.Foreign market system and the legal system is relatively more robust for our country,but the collapse of Arthur Andersen’s audit also shows that foreign issues there are many countries are actively audit risk control methods.At present,there are more than 70,000 practicing certified public accountant,but more than 8,000 accounting firms in the country,most of the accounting firm for small firms,but the public is more concerned about the audit risk of large accounting firms than those small ones.Therefore,the ability to focus on risk prevention audits of small accounting firms on how to improve also become a serious problem.By the analysis of HZ audited process,detailed analysis of the HZ accounting firms in different stages of the business undertaking,audit risk audit planning phase,the implementation phase of the audit and the audit report to the different stages of faces.From the perspective of the use of the audit risk model risk of material misstatement and detection risk analysis of the causes of audit risk,and its corresponding control measures proposed.And for the specific circumstances of HZ CPAs proposed measures to optimize risk control, management accounting firm for HZ provide some reference in the control of audit risk.HZ CPAs want to risk prevention and control research projects can cause management to the attention of the audit risk control in order to reduce audit risk to a reasonable level acceptable.Overall, the current CPA audit risk is caused by a variety of factors,accounting firms and CPAs are required to sign and constantly strengthen their risk awareness. Strengthen internal audit quality control for the accounting firm is a key factor in reducing audit risk,but the control of audit risk, but also need to improve the CPA from the source environment,increase customer awareness of risk management and effective internal control system operation and so many other social factors.