Research On The Application Of Performance Attribution Analysis In Audit Risk Identification

In order to meet the needs of the changing economic business,the auditing mode is constantly improved.However,under the modern risk-oriented audit,there are still a lot of failed audit cases.Most of the reasons are that the auditors prejudge and carry out audit activities based on the information provided by the audited entity,which leads to the failure to find the corresponding risks of the enterprise.At the same time,in the research literature of the past,performance attribution analysis is mainly used in management science,and less research combined with associated with audit,however,the daily activities of the enterprise,the factors that affect the performance and auditors facing the audit is a link between risk factors,such as the management of the enterprise strategy,management structure,economic environment,government policies,etc.To solve the problem of audit risk identification is not enough comprehensive,introduced in this paper,we study a new method of risk identification of audit-performance attribution analysis method,based on the literature summary,combining with the theory and fact,explore the application mode of performance attribution analysis,using literature research and case study,through the graph method and contrast analysis method for auxiliary to present the results of the study.The innovation of this article is: the performance attribution analysis provides a new understanding of the auditees and analysis methods of its business environment,financial information provided by the integrated enterprise,as well as non-financial information collected from the external environment analysis,the analytical philosophy and the modern concept of riskoriented audit,all are from the macroscopic angle consider audit risk,audit risk identification method is an effective.The main content of this paper is to firstly classify and summarize relevant research literature on audit risk identification and performance attribution,analyzes the feasibility of the application of performance attribution analysis in audit risk identification,and lays a foundation for the following research.Then,to use this article to the attribution theory,principal-agent theory,asymmetric information theory is expounded,as well as the performance attribution,risk-oriented audit,the audit risk identification and summarize concepts and definition of the enterprise performance influence factors are divided into internal factors and external factors,thus performance attribution analysis method and audit risk identification of the specific connection and application advantages,so that the performance attribution analysis method used in the actual case;Then,performance attribution analysis was applied to Kangmei pharmaceutical this specific case,from two aspects of internal and external multiple,analyzing the influence factors are affecting corporate performance of specific risk points,and will be linked to the audit risk,finally identify audit risk,suggests that performance attribution analysis the effectiveness of the application in audit risk identification;Finally,based on the results of theoretical research and case study,this paper summarizes the application points of performance attribution analysis in the identification of audit risk,so that the analysis method can be effectively applied in practice and put forward application suggestions.Kangmei pharmaceutical selected in this paper is of certain representative significance.As a leading enterprise among listed companies in the pharmaceutical industry,Kangmei pharmaceutical represents the basic operation situation of the pharmaceutical industry,and the audit failure will have a greater impact on the society and affect the overall image of the audit industry.On the other hand,Kangmei pharmaceutical contains the auditors in the audit practice that may be encountered in most of the audit risk,all kinds of risk involved more,when using the performance attribution analysis also will be able to show this analysis method is a more comprehensive analysis of the process,the analysis results,analyze the subsequent type or other industry enterprises have certain reference value.Performance attribution analysis of the application of pharmaceutical industry in the financial statements identify sig level strategic risk,management risk,competition risk and risk of continuing operations,exist in cognizance level inventory risk of identifying risk,financial cost and risk of asset impairment loss recognized,confirmed the performance attribution analysis method is practical,have certain effect in the prevention of audit risk,ensure the smooth operation of the audit work,maintain the capital market stability.