Auditors Can Prevent Risks By Understanding Audit Risks.

Modern auditing mostly adopts the sampling audit method, that is, inferring the general characteristics according to the general sample characteristics. However, there are always some differences between the characteristics of the sample and the overall characteristics, which may lead to the error of judgment.

Auditors need to use certain spot checks to bear a certain degree of audit risk of making wrong conclusions. And the application of sampling audit method and analytical compliance method runs through the whole audit process, so the result of the review will inevitably bring certain errors. Even with detailed audit, due to the complexity of economic operation, the management level, financial condition, quality of management personnel and trustworthiness of management institutions of audited units are also factors that may not be fully consistent with the actual situation of audited units. As we all know, auditing is mainly to find and verify problems through relevant information such as accounting materials. If these data contain false and intentional records, they will undoubtedly affect the audit results. Moreover, some problems of violation of law and discipline are not necessarily reflected in accounting materials. If the auditors are slightly careless, they may be confused by false phenomena.

Audit evaluation is the most important content in economic responsibility audit. As the final result of audit process, audit evaluation is not only a scientific, objective and accurate understanding of the economic behavior and consequences of leaders' tenure, but also the achievement of complex auditing activities.

In early 2006, the state owned assets supervision and Administration Commission of the State Council, based on summarizing the practice of economic responsibility audit in recent years, formulated a set of highly operational and guiding audit evaluation index system. However, the important audit evaluation terms of economic responsibility -- direct liability and executive responsibility, are still too broad and general. The basic data of enterprise evaluation should be adjusted according to the results of financial audit and objective factors of impact assessment. Increasing the use of qualitative indicators not only increases the difficulty of practical operation of auditors, but also requires auditors to have rich experience and proper professional judgement. In the practice of economic responsibility audit, some problems often encountered can not be solved. If the new official ignores the past, economic responsibility audit. evaluate It can not play a role; how environmental factors define the extent of economic responsibility; audit can not make full judgement; it is difficult to define long period audit projects with large span of time. Economic responsibility All these will bring audit evaluation risk.

Financial revenue and expenditure audit, financial final accounts audit, internal control audit, capital budget execution audit are generally in the annual period. The audit of economic responsibility is based on the duration of the whole period of operation of a business operator, usually over 3 years, so the audit of economic responsibility involves a wide range of audit and a long time span. On the one hand, there are many accounting information and frequent changes in financial personnel. New financial personnel are not clear about some economic facts that occurred in the past. They confirm that the audit workload is large in terms of the authenticity and legality of financial revenue and expenditure or assets liabilities and gains and losses, which brings many difficulties to audit implementation, and there are potential audit risks. On the other hand, during the tenure of office, national economic policies, market environment and financial system will all change, and the possibility of oversight will also increase.

Economic responsibility audit It provides an important basis for the correct use of cadres in the organizational departments, but in practice, the organization and personnel work is often not linked to the audit work. There are cadre management departments who ignore the audit results and use the cadres as they are, or have been promoted and reused by the auditors. The audit results are divorced from the use of cadres. Lack of binding force on outgoing persons makes audit formality.

Internal audit has the functions of supervision and service. The objective of internal audit requires not only to expose problems, but also to find out the causes of problems, to provide basis for decision-making, and ultimately to improve the management level of audited units. These functions determine the universality and complexity of internal audit contents, and also lead to relatively high requirements for auditors, not only with certain professional competence, but also comprehensive ability of analysis, argumentation and judgement.