Research On Risk Management And Countermeasures Of Ruihua Accounting Firm

Since 2016,the National Auditing Office proposed to strengthen the audit risk management and control mechanism in the "Thirteenth Five-Year Plan",the regulators,mainly the Securities Regulatory Commission of the People's Republic of China,have successively issued relevant standards to improve audit quality.However,the speed of reform of accounting firm's risk management and control is obviously slower than that of industrial supervision,and the risks that accounting firms may face in the course of their practice are gradually expanding.At present,researches on this issue at home and abroad mainly focus on the perspective of enterprises,or focus on the study of audit quality control assessment indicators,which are an important part of risk management.However,they stand in the perspective of the CPA industry or firm's management of their risks.Research on the improvement of the system is still not outstanding.Therefore,it is particularly important to find out the risk management deficiencies that accounting firms have in undertaking and executing audit services and quickly establish corresponding mechanisms.This article adopts a combination of literature review and case analysis,and selects a representative domestic company Ruihua Certified Public Accountants as a case study object.First,it penalizes the punishment cases received by Ruihua Certified Public Accountants and analyzes the status quo of its development.The reputational crisis brought about by the penalties and penalties;on this basis,the five elements of the newly released COSO model from 2017 are governance and culture,strategy and goal setting,performance,information communication and reporting,and review.The revision begins with an analysis of the existing flaws in the design and implementation of the current risk management system of Ruihua Certified Public Accountants.Finally,based on the above analysis,this paper proposes internal and external countermeasures to improve the risk management of Ruihua Certified Public Accountants.The main objective is to establish a COSO risk management system based on five internal factors and to strengthen supervision and punishment of the entire industry externally.In order to make the design of the risk management system more practical,this paper uses the questionnaire and field interviews to assist in the evaluation of specific indicators in the system.Through the study,this paper finds:(1)Based on the investigation of the recent penalties and triggering consequences of the case office,based on the three aspects of"governance and culture,performance,information communication and reporting,review and revision" of the COSO risk management framework elements.Summed up the shortcomings in the risk management of Ruihua Accounting Firm.(2)Built a risk management system based on some elements of the COSO 2017 version of the risk management framework to provide reference for Ruihua and other accounting firms to improve risk management.