How to control and avoid audit risk

(A) to strengthen the construction of audit team, improve the quality of auditors.

The level of audit risk depends on the personal quality of auditors to a great extent. Auditors should strengthen their risk awareness, persist in seeking truth from facts, be objective and fair, establish a rigorous and down-to-earth work style, treat every audit business seriously and responsibly, and audit in strict accordance with independent auditing standards to ensure audit quality and reduce audit risks.

(2) Optimize audit methods.

In terms of methods, we can introduce the most advanced risk-oriented risk-oriented audit mode at present, and make overall use of various methods on the premise of ensuring quality. For example, the review method refers to the auditor's careful observation and reading of the relevant written materials to understand whether the relevant materials and the economic activities reflected are reasonable, legal and effective, and is suitable for the inspection of all kinds of written materials. It is one of the most basic technical methods, but the review method is not an independent audit method, and is often only used to provide audit clues. In order to better collect audit evidence, the review method must be combined with other audit methods. Cross-use traditional audit methods to obtain audit evidence, so that the obtained audit evidence is more sufficient in quantity and quality, and the purpose of reducing audit risk is achieved.

(three) to strengthen the internal control of the audited entity.

Because there are some defects in the internal control system of the audited entity, the audited entity should improve the internal control system from three aspects: strengthening economic business management, combining internal control system with internal incentive system, and establishing and perfecting internal control evaluation system to ensure the legitimacy and rationality of its economic activities and economic data.

(4) Improve various laws, regulations and systems.

Laws, regulations and legal norms are the standards for auditors to judge right and wrong. With the development of economy and the change of social environment, new situations and problems will appear at any time. In addition to the management of civil liability of certified public accountants, it is necessary to improve the existing audit laws and regulations in China.