Business risk approach, a new approach to improving the quality of the audit

In recent decades, the traditional audit approach has been much criticized. The demands for greater effectiveness, fewer fees, create more value, and improving the quality of audit services, audit risk audit approach has led to the adoption. Given the limitations of the audit risk model, business risk audit approach emerged. The business risk audit approach to the holistic, comprehensive and profound understanding of the industry, strategy, business models and client processes are created. Thereby improving the efficiency and effectiveness of the audit, fee reductions, and increased value to the client and the auditor. Business risk increases the likelihood of identifying risks of material misstatement. In this paper, to better understand and describe the business risk, the audit risk model and its limitations and weaknesses are described. The emergence of business risk audit approach, and the business risk audit framework is introduced. The Business Process model-evaluation of KPMG has reviewed.