Research On Audit Risk Management Of BC Accounting Firm

With the deepening of reform and opening policy and increasingly market-oriented operation and management,audit becomes more important and social recognition of CPA is higher and higher,which causes rapid development for audit industry.Meanwhile,audit development comes together with audit failure and audit fraud.How to manage audit risk effectively has become more and more important,not only for auditors,accounting firms,but also for the social public.Therefore,a series of audit risk theories,models or methods are built up to control risk.The theories are no doubt of strong guidance for audit industry.However,it may be not so applicable to small accounting firms since most of the theories are investigated based on middle or large accounting firms.Small accounting firm has weak audit risk tolerance because of its capital scale and financial capabilities.An audit risk can lead to its collapse.Actually there are large number of small accounting firms in china which need our focus and theory support.This article aims to point out the existing problems in small accounting firms,and provide targeted improvement methods on how to manage audit risk with many deep analysis.Take BC public accounting firm as an example.