Study On The Audit Evaluation Of The Risks Of Local Government Debts In China

The European sovereign debt crisis rises one after another, France, Britain, Japan and other countries now are facing huge debt pressure. Under the impact of the debt crisis and the current weak economic environment, the scale of the local government debt in China has shot up in order to stimulate the economy which contains immense potential risks. Therefore, to carry out the audit of the debt risks has become a hot research.The audit on debt risks is long-standing and has been quite mature, but written works about the audit on the risks of local government debt are very rare. A lot of important theoretical and practical problems remain to be solved, among which the audit evaluation on local government risks is the most important problem. Traditional debt auditing have still been dominant, a reasonable and and scientific it evaluation system has not yet been formed. In this thesis, based on the four dimensions of scale risk, structural risk, project risk and moral risk, the audit evaluation system of the risks of local government debt are to be built so as to make my modest to auditing actual work of the local government debt risks.In this paper, the audit evaluation system of the risks of local government debts and its application is to be studied. Based on the introduction of the research background, research status at home and abroad and the related theory of the risks of local government debts, this thesis describes the situation of our country local government debts, classification and basic characteristics of local government debt and defines the concept. From the four dimensions of scale, structure, project and moral risks, this paper describes the source, formation and specific situation of the risks of local government debt focusing on exploring the audit evaluation system of risks of local government debts through constructing four dimensional multi-level evaluation index system by AHP method. Finally, two conclusions are drawed and relevant policy suggestions are put forward by taking Chongqing as a case to test the effect degree and empirical estimates.Specifically, this paper draws two conclusions:(1) there is inevitability in the generation of the risks of our country local government debts while total risks are controled.(2) through the construction of audit evaluation system by AHP method, empirical test is conducted on the west city Chongqing and the risks have entered the buffer zone. Finally, on the basis of the conclusions, this paper puts forward policy suggestions in four aspects:(1) establish and strengthen the local government debt risk early warning mechanism;(2) strengthen project audit supervision and establish audit oversight mechanism for debt capital;(3) strengthen the audit and supervision of local financing platform;(4) improve the local economic responsibility audit of leading cadres;(5) improve the evaluation standard of audit and innovate audit mode.