Proposed Analytical Framework to Assess Audit Risks

The risk-oriented audit approach has been being applied in China since 2006 when Chinese Certified Public Accountants Auditing Standards (CCPAAS) was issued by the Institute of (CICPA). However, most small-and medium-sized CPA firms still have difficulty assessing risk accordance with CCPAAS efficient and effective analysis analytical procedures. Also, there are few studies introducing how to apply procedures as it requires external assistance complex computer Therefore, this study aims establish an framework on efficiently effectively for China. It is based DuPont model rationality indicators, which familiar financial officers auditors. proves that such simple perform can easily combine information strategic analysis, business statement from personalized staffs at all levels work it. Under premise ensuring quality audit, improve efficiency reduce costs need badly facing challenges.