Research On Audit Risk Prevention And Control Of Accounting Firms

With the rapid development of China's economy,the auditing industry has also grown rapidly and has occupied an important position in the market.However,in recent years,a number of accounting firms were exposed as audit failures events,which has had a great impact on the market,resulting in people's trust in accounting firms being greatly reduced,and the ability of auditors to practice and other aspects of doubt.In addition,there are various types of audit services,the development structure of the audited unit is becoming more and more complex,and the means of fraud are becoming more and more diverse,etc.Affected by the above factors,accounting firms are facing more and more risks when they engage in audit work.In this situation,the importance of accounting firms to prevent and control audit risks is self-evident.This paper takes Ruihua Certified Public Accountant as an example,which is a typical representative of the local accounting firms.Combined with the cases of audit failure,several cases being investigated and relevant materials of Ruihua Certified Public Accountants in recent years,this paper studies the current situation of audit risk of Ruihua Certified Public Accountants,analyzes the internal and external factors affecting audit risk of Ruihua Certified Public Accountants.Based on internal influencing factors,it is found that the rapid expansion of Ruihua Certified Public Accountants,unreasonable audit fees,problems in audit process,such as certified public accountants' failure to maintain reasonable professional doubts and imprecise audit procedures,will affect the audit risks of accounting firms.Then it analyzes the external factors that influence the audit risk of Ruihua Certified Public Accountants from the two aspects of the audited and the external environment.Since the external factors are beyond the control of Ruihua Certified Public Accountants,the final recommendations are based on internal factors on how to improve the prevention and control of audit risks of Ruihua Certified Public Accountants.Hope to provide some reference for Ruihua Certified Public Accountants and other accounting firms to strengthen the prevention and control of audit risks in the future.