The material misstatement risk is a core procedure of the modern risk-based audit. Subject to the theory and practice, there is a complicated relationship among factors that impact material misstatement risk, which results in the inefficient application of modern risk-based audit pattern in the most local accounting firms. By using the SEM, this article describes the developing of the complicated risks and analyzes the interaction between them. The result shows that not all factors have a direct effect on the material misstatement risks.