Audit evidence model has evolved through what stage

Audit evidence model *** has gone through three stages:

1, accounts-based audit stage

Accounts-based audit stage, mainly based on accounting matters and accounts, starting from the accounting information to obtain the relevant audit evidence, the formation of audit evidence and conclusions. Its advantage is that it can directly obtain audit evidence of substantive significance, audit quality is higher; disadvantage is that in the audit environment and audit objectives have changed dramatically under the conditions of the audit, account-based auditing has been unable to take into account the audit quality and audit efficiency of the two aspects of the requirements.

2, system-based audit stage

System-based audit stage is to start from the internal control system of the audited unit, based on the results of the control test to determine the scope of substantive testing, focus and other attributes, and based on the results of the inspection to form audit opinions and conclusions. The advantage is that it can improve audit efficiency and reduce audit risk; the disadvantage is that it can not directly solve all the audit risk issues.

3, risk-based auditing stage

Risk-based auditing stage, the auditor and then on the basis of the assessment of various risk factors, risk control is integrated into the audit methodology, and then access to audit evidence, the formation of audit evidence and conclusions of the model. Audit risk depends on the risk of material misstatement and inspection risk. The formula is: audit risk = risk of material misstatement x inspection risk