Audit risk assessment: in short, it refers to the possible audit risks of an audit project after the auditor accepts an audit project and adopts certain audit technical means on the basis of a preliminary understanding of the basic situation and relevant information of the audited entity.

Audit risks include inherent risks, control risks and inspection risks.

Audit risk assessment mainly involves all aspects of the audited entity itself. If the auditee is large in scale, complex in business nature, weak in internal control and unreliable in management, the audit risk assessment will be higher. Audit risk exists objectively and is not subject to the subjective influence and control of auditors.

For example:

Audit risk assessment:

1. According to the requirements of audit institutions on audit importance and audit risk assessment standards, combined with the audit experience of other units of the same nature, and according to the requirements of audit objectives, the acceptable audit risk of this audit project is set at 5%.

2. Inherent risk assessment: According to the pre-trial investigation of the audited entity and the principle of robustness, the inherent risk level is determined to be medium, that is, 50%.

3. Control risk assessment: According to the compliance test of the internal control of the audited entity, due to the lack of some control links, the control risk is defined as medium, that is, 50%.

4. Audit inspection risk is calculated according to the calculation formula of risk model, that is, inspection risk = audit risk/(inherent risk × control risk) =5%/(50%×50%)=20%, that is, the required inspection assurance degree is 80%, which shows that the balance test should be given priority in the future audit implementation process.