Research On Audit Risk Management Of SD Accounting Firm

With the steady growth of China's economy,the capital market also ushered in a new opportunity for development.The status of the public accounting firm also appears more and more important,because in the capital market plays a "gatekeeper" role,enterprise annual auditing reports issued by certified public accountants is a capital market supervision department on the basis of the related enterprise management,is also the general investors to invest in capital markets.The unprecedented attention of the public to the audit report brings new opportunities to the development of accounting firms,and at the same time increases the audit risk of accounting firms.In the second half of 2018 alone,the China securities regulatory commission(CSRC)imposed administrative penalties on four accounting firms for five audit businesses within six months.The punishment amount brought by the five auditing businesses to the accounting firm is as high as 20 million yuan,and the social public trust and reputation of the accounting firm are immeasurable.Therefore,the management of auditing risks becomes more and more important to the accounting firm.This paper,by studying the research status of audit risk management at home and abroad,expounds the theories and concepts related to audit risk and audit risk management,and identifies ten influencing factors of audit risk of SD accounting firm by means of questionnaire survey from the two aspects of heavy and big mistake risk and inspection risk.The ahp-fuzzy comprehensive evaluation method was used to comprehensively evaluate the risk influencing factors identified in the questionnaire survey,and finally it was concluded that the major misstatement risk of SD accounting firm was above the medium level,the inspection risk was close to the medium level,and the comprehensive audit risk was also close to the medium level.According to the questionnaire survey and the analysis of evaluation results,it can be concluded that SD accounting firm does not have a deep understanding of the risk awareness of the audited enterprise and the possible risk of fraud,and does not take enough implementation procedures,which is the main reason for the high risk of material misstatement of the institute.The firm failed to,in strict accordance with the assignment procedure to assign auditors to audit professional competence is uneven,the project team,in turn,increases the firm's risk examination,at the same time to undertake the auditing business of more and less understanding of the audited enterprise service requirements and entrust motivation even lower audit fees is SD certified public accountants to check thereason of higher risk.Finally,based on the analysis and evaluation results from two perspectives,i.e.,serious big mistake risk management and inspection risk management,specific Suggestions are given to SD accounting firm respectively.