Audit risk is the risk of carrying out audit work. If the audit is carried out according to statistical methods, the audit risk can be quantified by confidence level, accuracy and standard deviation. If non-statistical methods are used to audit, it is impossible to quantify the audit risk. As long as the audit is carried out in accordance with sufficient professional prudence and audit work norms, and the audit risk is controlled at a reasonable and acceptable level under the premise of considering cost-effectiveness, the audit risk can only be reduced and cannot be avoided. Financial risk is the financial operational risk brought by the use of debt funds, which should be considered in combination with operational risk. According to the theory of enterprise life cycle, when the operating risk is high, we should control the lower financial risk and try our best to use our own funds to ensure the operation; When the operating risk is low, we can accept higher financial risk to achieve greater shareholder value return, and try our best to use debt funds to ensure the operation.