Research On The Improvement Of Modern Audit Risk Relationship Model With Whole Process

In recent years,audit failure cases occurred frequently in our country.The problems of inadequate audit procedure,insufficient professional competence and low level of professional ethics all lead to audit failures.However,there are also some problems in the application of the modern audit risk relationship model in China.Different from the western market structure of widowhide audit,China belongs to the competitive market structure,with a large number of firms,resulting in the bad phenomenon of low-price competition.The audit market is in the buyer’s market for a long time,so there are risks in the link of business signing.At the same time,in the link of the report,there are risks such as type selection,writing,review,etc.,but in the understanding and application of modern audit risk relationship model,we often ignore the risk elements of each program node in the whole process of independent audit procedure(hereinafter referred to as the "whole process").In this way,during the application of the model,the auditor may have some omissions and omissions in the identified risk elements,leading to audit failures.Through analyzing the application status and limitation of modern audit risk relationship model at home and abroad,the necessity of improving the model is expounded.Identify the risk elements existing in the links of audit signing,inspection and report,find the hidden risks in all links of the whole audit process,and then summarize the risk elements into corresponding risks according to their own attributes,so that the original risk of material misstatement and inspection risk elements are detailed and supplemented in a comprehensive way according to the distribution of risk points in each link of the audit process.According to the standard of business process,the audit risk is divided into two stages: the risk of subject accepting audit and the risk of CPA implementing audit.Then,the risk elements of each audit process node in each stage are identified by stages,and the status of each risk element is established on the basis of rigorous reasoning of the internal relationship of each risk element by using philosophical and mathematical thinking.Then,the correlation between each element and audit risk is carefully demonstrated,and a new audit risk relationship model is derived.Based on rigorous academic attitude,probability theory and comparative analysis method are adopted to test the correctness and advanced nature of the new model.Finally,in order to popularize and apply the new theoretical model,this paper introduces the application process,methods and requirements of the new audit risk model.