Study On Contemporary Risk-Based Audit At T Accounting Firm

With the rapid development of the global economy, the enterprises' internal and external business risk increases, the factors that influence and restrict independent audit are of more complex, the traditional audit model is not adapted to the new audit environment any more, audit failures occur frequently, the new audit model —modern risk-based audit model emerged in order to change the CPA audit dilemma. China implemented new auditing standards from January 1, 2007, indicates that China has since entered the era of modern risk-based audit. However, China's small and medium sized accounting firms still have many problems in applying modern risk-based audit. This essay is to research the implementation of modern risk-oriented audit in these accounting firms combined with the actual T CPA audit case.This essay takes T Accounting Firm as the case study. Firstly, it discusses the theory of modern risk-based audit, presenting the characteristics of the modern risk-based audit by comparing with the traditional audition. Then, the essay introduced the research details including the information about T Audition Office. In this part, it carried out the empirical study by analyzing the process in which how T Accounting Firm audited on the target company. According to the detailed procedure and guidance of modern audition approaches, the writer points out some problems existing in the course of audition. Lastly, the writer put up with some problems worthy of being discussed furthermore on the base of comprehension to the possible reasons. For example, if T Accounting Firm wants to carry out the audition into practice, it should strengthen the analysis from the aspect of strategy such as the managing environment, the managing process and the managing model, on which T should raise some relevant suggestions on how to handle the audition. The detailed measures are concluded as following: develop comprehensive skills of the auditors, set up data base about auditing risk, expanding the managing sphere and offer more value added service, strengthen the construction of certain law system and support of policy from the government. This essay aims to provide an all-round and available measures for audition in hope to provide useful suggestions to those media and small accounting offices while doing audition.