Analysis on the causes and preventive methods of audit risk
Audit risk; Independence; Communication audit risk refers to the possibility that certified public accountants may express inappropriate audit opinions after auditing due to significant misstatement or omission of accounting statements. Therefore, preventing audit risks is an eternal theme for auditors. It is not only the guarantee of the credibility and quality of audit institutions, but also related to the vital interests of auditors. In China's current economic life, the reform and development of enterprises cannot be separated from auditing. The key to do a good job in auditing is to understand the causes and preventive methods of auditing risks, and to prevent and avoid them as much as possible, so as to effectively promote the development of auditing. I. Causes of Audit Risk (I. Objective factors that form audit risk 1. The setting mode of audit institutions is unreasonable. The independence of audit institutions is not strong, which affects the authority of audit work In the mid-1980s, with the promotion of the government, China's internal audit gradually developed. However, it is too administrative. On the one hand, the internal staff of the enterprise should be guided by the business of the state audit institutions and supervise and inspect their own units; On the other hand, subject to the administrative leadership of the unit, wages and benefits are solved by the unit. The extroversion of professional work and internalization of administrative treatment make it difficult for auditors to enter the role. Over time, the audit lost its authority and independence. Independence is the soul of audit work. If we can't effectively guarantee the organizational independence, autonomy and authority of audit institutions and personnel in their business work, we can't guarantee the audit quality and avoid audit risks. 2. Uncertainty of economic environment. With the development of social economy and the intensification of competition among enterprises, there are more and more uncertain factors in the enterprise environment, which leads to the emergence of uncertain economic business and the increase of accountants' professional judgment business.
Audit risk analysis
It runs through all the activities, that is, as long as there is an audit activity, I made a decision to explore moving in April 2007. There must be audit risk. Due to the complexity of the environment or business, the understanding of the audited entity is not thorough and comprehensive, and the trust in the management personnel is too high, so the audit engagement letter is hastily signed. All these will lead to audit risks, and problems in any link will increase the audit risks of certified public accountants. (II) Manifestations of audit risk 1. Audit sampling risk. Sampling risk is a common method in audit work at present. Theoretically speaking, the samples selected by sampling risk should be representative of the whole population. However, in practice, due to various subjective reasons, it is still uncertain to what extent the sample can represent the whole. In particular, at present, the method of judgment sampling is often used. Due to the lack of experience and knowledge of some auditors, the sampling error is very large, which may lead to incomplete collection of audit evidence, incomplete audit inspection and inaccurate audit opinions and conclusions, and the wrong judgment will be correct or wrong, resulting in the risk of leaving false or abandoning true. 2. Audit the risk of punishment. Audit institutions have the right to deal with and punish violations of discipline and discipline of audited units. However, if it should be handled in accordance with the law but not handled, or if it should be handled by other relevant departments without legal basis or improper basis, the audit institution will directly impose punishment, which will lead to punishment risks. 3. Audit evidence weighs risks. Audit evidence plays an important role in audit activities, and audit conclusions need to be confirmed by audit evidence. In the audit process, there is no uniform standard for the quantity and quality of audit evidence, which is often judged subjectively by auditors, leading to subjective deviation.