How to improve audit quality and prevent audit risks

I. The concept of audit risk and its causes The so-called audit risk is defined in China's "Specific Standards for Independent Auditing No.9-Internal Control and Audit Risk" as: the possibility that there are major misstatements or omissions in accounting statements, and the certified public accountants may issue inappropriate audit opinions after auditing. Audit risks include inherent risks, control risks and inspection risks. In the national audit, there are also problems that the accounting information and business data provided by the audited entity are untrue and incomplete, and the audit conclusions and audit evaluations made by auditors are inappropriate, which leads to audit risks and affects the quality of audit reports. The main reasons for audit risk are:

(1) External environmental factors. On the one hand, with the development of modern science and technology and emerging industries, the market competition of enterprises is becoming more and more fierce, and the business risks, investment risks and financial risks of enterprises are also increasing, accounting information is more inaccurate, substantive testing is more difficult, and the public has higher expectations for auditing, which leads to increased audit risks. On the other hand, the Constitution and the Audit Law clearly stipulate the dual leadership management system of local audit institutions, which leads local party and government leaders and department leaders to intervene in audit law enforcement out of regional interests, departmental interests and unit interests, increasing the difficulty of audit law enforcement, affecting the seriousness of audit law enforcement and expanding audit risks. In addition, the change of audit object and the expansion of audit content also increase the audit risk. Traditional auditing mainly focuses on facts, and it is a kind of error detection and correction with financial revenue and expenditure auditing as the main content. With the development of market economy and the establishment of modern enterprise system, various economic components are diversified, the scale of enterprises is constantly expanding, economic operation is more complicated, and financial information forgery, intentional fraud and other acts make the audit content more complicated. In particular, the audit object of economic responsibility audit is the "number one". They should not only check the authenticity and legality of their financial revenues and expenditures, but also evaluate the scientific decision-making, economic benefits and economic responsibilities of the main leaders of their own units. Because there is no unified evaluation index system, the audit risk is more prominent.