Audit Of Key Audit Matters Of Shine Wing Research On Risk Control Strategy

In recent years,with the development of China's capital market,companies need to deal with various types of risks in the operation and management process.Correspondingly,accounting firms and certified public accountants,as "economic police",need to deal with the risk in the practice process also increased.The frequent occurrence of audit scandals has made the auditing industry face unprecedented credibility crisis challenges.Public confidence in audited financial information has plummeted,and there is growing dissatisfaction with the simple pattern of passing/failure of current audit reports,calling for improved audit report formats and more disclosure.As a result,the International Auditing and Assurance Standards Board(IAASB)issued International Standards on Auditing No.701-Key Audit Matters,requiring communication of key audit matters in audit reports.China's Institute of Certified Public Accountants has also continuously revised and improved the auditing standards,and subsequently revised and promulgated the 1504 auditing standards,which also requires the communication of key audit matters in the audit reports.Therefore,how to effectively control and prevent the audit risk of key audit matters brought about by the revision of auditing standards is a new problem that needs to be solved for the auditing industry,accounting firms and certified public accountants.Based on the modern risk oriented audit model and related theories of key audit matters,this paper establishes the audit risk model of key audit matters.Taking Shine Wing Accounting Co.,Ltd.(hereinafter referred to as "Shine Wing")as the research subject,the whole process of auditing customer companies is analyzed as a case study.Considering that the audit risks of the key audit items faced by Shine Wing are composed of the general level,the level of significant misstatement risk,the level of inspection risk,and the level of professional judgment risk,Moreover,the accounting firm has taken effective measures to prevent and control the audit risks of the key audit items in the above four levels and achieved certain results.From this,we conclude the experience of perfecting the audit risk control system,strengthening the audit project risk control ability,improving the professional judgment ability of certified public accountants and improving the external audit environment,so as toprovide reference for the industry,so as to promote the healthy development of the certified public accountants industry in China.