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Example:

I. Audit Risk

In audit practice, although auditors have implemented standardized audit procedures and methods, there is still the possibility of making wrong judgments. Once the wrong audit judgment is made, it will lead to some bad consequences, so there are certain risks in the audit work, which is audit risk. Audit risk is determined by the complexity of economic business and the limitations of audit methods.

First of all, from the perspective of certified public accountants, audit risks run through their audit activities. When selecting customers, the uncertainty of the external environment and economic business of the audited entity may lead to selection risks, such as the suspension of production by the audited entity or the sharp decline in sales of major products in the market; When drawing up an audit plan, insufficient planning may lead to the planning risk of making wrong audit decisions, such as giving up audit procedures that you think are unnecessary in order to save manpower, material resources and financial resources; When sending auditors, there are capacity risks caused by the incompetence of the appointed personnel, such as poor professional ability or bad professional ethics of auditors; When collecting audit evidence, there is a risk of not collecting enough effective information, such as the audited entity failing to provide necessary statements; When using sampling technology, there is a sampling risk of improper sample number and sample selection. For example, too many samples will waste wood, and improper sample selection will take a detour. Especially, judging sampling is the auditor's subjective judgment based on experience, and it is easy to miss important matters. When compiling audit reports, there is the risk of improper audit opinions, such as inaccurate and unfair audit reports. Every risk is a collection of multiple factors, and mistakes in any link will increase the final audit risk. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .