Audit Analysis : Audit And Audit

1188 Words Jun 2nd, 2016 5 Pages
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 means that the risk of expanding the practice of certified public accountants. First of all, for the CPAs, audit risks always follow through its audit activity. When choosing clients selectively, risks have been caused by external economic environment and business uncertainties audited entity. In addition, because of the formulation of the audit plan, there are plans to make the wrong cause inadequate audit plan decisions risk. When dispatch auditors have delegated staff competencies to not cause risk. During collecting audit evidence, there is not enough valid data for collecting evidence of risk. However, when using sampling techniques, sample size and sample selection have improper sampling risk. During the preparation of the audit…

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