What are the audit risks?

Audit risks include material misstatement risk, inherent risk and control risk. The risk of material misstatement refers to the possibility of material misstatement in financial statements before audit; Inherent risk refers to the possibility that a transaction, account balance or disclosure is prone to misstatement before considering relevant internal control; Controlling risk refers to the misstatement of a transaction, account balance or disclosure. Units audited by social audit institutions are subject to audit supervision by audit institutions according to law, and audit institutions have the right to consult relevant audit reports issued by social audit institutions in accordance with the provisions of the State Council.

legal ground

Article 30 of the Audit Law of People's Republic of China (PRC) * * * If a unit audited by a social audit institution accepts the audit supervision of the audit institution according to law, the audit institution has the right to consult the relevant audit report issued by the social audit institution in accordance with the provisions of the State Council.