A Case Study Of Financial Fraud Audit Based On Modern Risk-Oriented Auditing

In the 21 st century,globalization has become increasingly intensifying,and the world economy has also been developing rapidly.“The more the economy develops,the more important the accounting is.” The development of the times also puts forward higher requirements for the traditional risk-oriented auditing model.Besides,that financial frauds come out in an unending flow and management engage with embezzlements not only make it more difficult to audit,but also expose the limitation of traditional audit mode.The traditional auditing methods used by certified public accountants can no longer effectively detect management fraud.As the news media continuously exposed audit failure cases,the CPA's independence and professional competence were challenged unprecedentedly,and its professional image was greatly discounted in the public's mind.This article reviews the theory of modern risk-oriented auditing and financial fraud at home and abroad,selects mainstream theories,and uses the method of case analysis and applies it to H company's financial case analysis.First,through the risk assessment of the internal and external environment in which H company is located,we understand the operation of its internal control system;second,identify the company's major accounts according to the established importance level,and implement corresponding audit procedures for the major accounts identified combining the company's financial status and operating results in the past three years;Finally,in light of the current practice of the application of modern risk-oriented auditing,we get some revelations from it and conclude that H company has undisclosed bank accounts and large amounts of funds,the price of related party transactions is not fair,there is suspicion of interest transfer,hidden sales expense is not compliant,and there are serious misstatements in the purchase payment link.The modern risk-oriented audit model can help auditors identify financial fraud more effectively,and help discover problems existing in the medical device manufacturing enterprises from the view of the risk assessment.And based on the lessons learned from them,domestic firms improve the current shortcomings of low audit quality.It is hoped that through the analysis of this article,it can provide constructive suggestions for the popularization and wide application of modern risk-oriented auditing in China,and can provide certain reference for the financial regulations of the medical device industry.