Research On Evaluation On And Countermeasures To Audit Risk Of A CPA Firm

During recent years,development in audit industry has made great process.However,while academic research on audit risk still on its basic level,with public concern continue to grow and many problems remain to be solved,audit risk has made the top of the list of issues to be concerned.Also,i ndependency of CPA has been compromised gradually.With no regulations have been established yet,CPA would sure to take the blame and guilt for cases related to audit risk.We haven't witnessed another “Enron event” for many years now,but that doesn't mean we do not have flaws and problems on audit risk controlling.Researches on audit risk of certain domestic CPA firms are rare,so that brings up the concern on audit risk.To solve this issue,we need to introduce a method that can evaluate audit risk properly.Besides that,during the research,the author will also point out the problems A CPA firm possess and give related solutions.Based on acknowledgement of researches of both domestic and international scholars,the author first introduces the basic information of A CPA firm,and then introduces the client by properties,industry,and public markets.Introducing “PGAP” follows the research,and gives an analyzation on audit risk control problems of A CPA firm,which is also the foundation on developing the following researches.During the research,the author introduces both traditional audit risk model and modern audit risk model.After a brief analyzation on the two models,the author established an audit risk evaluation method based on the model.Questionnaire is designed to gather and acquire data related to the research and validation of the research is also confirmed after conclusion is given afterwards.From the research,we draw the conclusion that the general audit risk of A CPA firm is identi fied as the level of “Low risk” and with problems still exist.Finally,the author gives suggestions on how to improve the controlling of and prevention of problem caused by audit risk.