Study On The Application Of Data-based Audit Model In Accounting Firms

With the continuous progress and development of Internet technology,more industries are actively striving for transformation and innovation to adapt to the needs of the new era,specifically:refinement of operations,multi-channel collaborative operations,the use of their own data formed in the process of scientific and accurate decision-making.As a bridge between enterprises and consumers,the business model plays a pivotal role in the operation of enterprises.In the big data environment,traditional financial analysis methods can no longer meet the requirements of enterprise development,and advanced technology is needed to realize the management and supervision of enterprise value-added process.Since many enterprises have made changes in their business methods and financial management,they need to adopt suitable audit methods for their characteristics in the process of auditing enterprises."Data is a resource" has become a social consensus,and for most firms,data-based auditing offers not only opportunities but also challenges.On the one hand,data-based auditin g can reduce audit risk and improve the quality of audit work,and it can help to significantly improve audit efficiency by changing the way audits are conducted because of the widespread understanding of how audit data is mined from multiple perspectives.On the other hand,auditors are challenged to develop a comprehensive knowledge of the data-based audit process and audit techniques,and to apply them flexibly in the audit preparation,execution and reporting phases.The continuous advancement of technology,represented by big data technology,also provides opportunities for changes in the audit model.In the case of government auditing,the application of data-based audit model has achieved good results.However,there are some difficulties and problems in the process of data-based auditing by accounting firms.In order to promote the application of data-based auditing model in accounting firms,it is necessary to be assisted by safeguards from multiple perspectives,such as accelerating the construction of databases and creating a macro environment suitable for its development,in order to facilitate the application of data-based auditing to the audit work of firms.The continuous development of technologies such as big data,artificial intelligence,and cloud computing has provided technical support for the development of audit models.Based on information asymmetry theory,information system theory,Bamford’s law and synergy theory,the paper compares domestic and international literature on the specific application path of data-based audit model and the relationship between big data and auditing to find the theoretical basis for promoting the application of data-based audit model in auditing work.Meanwhile,by studying the specific case of Ernst&Young firm’s audit of Luckin Coffee,the paper identifies the problems in the process of applying the data-based audit model by Ernst&Young firm,and makes suggestions for optimization from the aspects of business model analysis,data collection,processing and analysis.Finally,the paper proposes a series of safeguards from different perspectives,hoping to provide experience for the application of the data-based audit model in the audit work of the firm.