ANALYSIS AND CONTROL OF ACCOUNTING FIRM’S AUDIT RISK

Chen Junyu

ABSTRACT: With more and more attention people paid to quality and the authenticity of the audit report and the audit opinion,it is highly time for auditors and accounting firms to pay attention to the audit risk during the audit progress in case of the negative effect of the credit of accounting firms or even the future development of the audit industry.This paper takes the Securities and Futures Commission of Jilin Authority handle with the audit failure of the Tonghua Grape Wine co.ltd (Tonghua)as an example,do the specific analysis of the status and problems of audit risk the audit firms faced with in the audit process, looking for a reasonable approach to enhance the risk awareness of the firm’s awareness from the three aspects of audit,such as audit subject, the audit object and the external environment.The contribution of this paper is to combine the existing recent case in 2016 with specific analysis of audit risk and give the proposal from the three aspects of audit standpoint.

Keywords: Audit risk, risk control, accounting firm.