Audit Analysis : Audit And Audit

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Introduction In the early days of independence the audit, audit methods are for the detailed audit approach which is using the accounting books of the audited entity to verify case by case basis, and for the purpose of exposing the wrong check fraud; With the expansion of enterprise scale and complex business activities, audit sampling appears that, according to accounting statements balance and accounting data sample extraction section, and then inferring the overall result of the review. This approach will be inevitably sweeping; recently, there was not only reveals the compliance of accounting standards and disclosure errors and fraud dual audit mode, which means gradually expanding the scope of responsibility of the audit, but also…show more content…
Each set of risk is multifactorial, and as a part of any mistakes will increase the final audit risk. Ethics Analysis Corporate governance is a key factor, which must maintain a high degree of independence in order to effectively monitor managers. However, due to fragmentation and instability in equity, the general shareholders could not unite on the implementation of effective public reading to enable shareholders to senior management for monitoring efforts greatly reduced the formation of a "weak shareholders, strong management" phenomenon. In many cases, the board of management was influenced and controlled by the corporate governance. The lack of independence of the board and directors are not independent both become a problem in a number of listed companies in the United States at present. To be more specific, serious Fraud audit units were illegal but also a source of aggravation of audit risk. AICPA under the "auditor responsibilities of the Committee" recommends: "Independent auditors should consider measures to prevent customer fraud control the appropriateness of, and has the responsibility to look for fraud and asked to reveal who usually practice with due care can be fraud uncovered. "This shows that the responsibility of the audit have been from a single violation of public disclosure of accounting standards evolved into both reveal errors and fraud, and breach of public
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