Research On Audit Risk Prevention Measures Of Small And Medium Sized Accounting Firms

In recent years,with the state vigorously supporting the development of small and medium-sized enterprises,the regulatory role of small and medium-sized accounting firms in regulating the healthy development of enterprises is very prominent.At the same time,uncertain factors in economic operation bring difficulties and challenges to audit work,and it is not uncommon for audit failures to be punished by the industry.At the beginning of 2021,the Chinese Institute of Certified Public Accountants made a heavy attack,forbidding to hang certificates and seals and controlling the number of reports,strengthening quality management,and assuming lifelong responsibility.Strict and strong control has sounded the alarm for the practice quality of accounting firms.How to effectively manage audit risks has become a compulsory course for accounting firms to survive and an important factor to improve their core competitiveness.First of all,from the microscopic point of view,this paper uses the questionnaire survey method to explore the present situation and problems of audit risk of firms from four stages: audit business undertaking,audit plan,audit implementation and audit report.It is found that there are some problems in the audit business process of firms,such as insufficient auditor competence,insufficient independence,incomplete planning and implementation procedures,imperfect review system and so on.In addition,this paper expounds the characteristics and present situation of small and medium-sized accounting firms from a macroscopic point of view,and finds that they are faced with problems such as poor auditing environment,imperfect laws and regulations and supervision mechanism.Secondly,combined with literature analysis,this paper identifies the audit risk factors of small and medium-sized accounting firms.Then,based on the analytic hierarchy process(AHP),the audit risk evaluation model is constructed,and then the influence degree of risks is determined,which is the independence risk,operational risk,misstatement risk,inspection risk,policy risk and information risk from top to bottom.In addition,this paper puts forward risk prevention and control measures from two aspects of audit environment and audit process to prevent risks in all directions.In the business undertaking stage: strengthen risk identification ability,strengthen risk assessment,and formulate competency evaluation system;In the audit planning stage: adhere to the planning principle,formulate the audit planning process and determine the importance level;In the stage of audit implementation: adopting various audit methods,paying attention to control testing and strengthening substantive procedures;In the stage of audit implementation: improve the review system and strictly control every link of the audit report,so as to reduce its own audit risk.At the same time,from the audit environment,firms need to strengthen personnel training,establish internal control system and strengthen risk awareness.Finally,this paper uses the HW project of Chongqing QS Certified Public Accountants as a tracking application analysis to prove that the risk control measures are reasonable and effective.