Analysis of the current situation of audit risk

The meaning of audit risk, many scholars at home and abroad have done active exploration, different people due to the different perspectives of the study, the conclusion is not entirely consistent.

1. Foreign scholars on the definition of audit risk. Foreign research on audit risk is embodied from the statement, that is, the financial statements do not fairly reflect the risk that auditors believe has been revealed. Koehler's Dictionary of Accounting defines audit risk as: first, the possibility that the appraised financial statements do not fairly reflect the financial position and results of operations of the audited entity; second, the possibility that the auditor does not perceive that there are important errors in the audited entity or the scope of the audit. International Standard on Auditing (2004) No. 25 "Importance and Audit Risk" defines audit risk as: "the possibility that the auditor will provide an inappropriate opinion due to misstatement of financial information".