A Study Of Local Government Debt Audit:a Review Of Riskoriented Audit Approach

Local government debt is a huge risk that China’s economy is currently facing，which affects the safety of financial funds. After the audit storm of local governmentdebt，the local government debt audit work gets more and more attention. However,local government debt in China have problems in the implementation of the audit,such as the goals which audit can achieve are still the authenticity and legality, lackingof efficient work mode, audit resource configuration is not reasonable. Theimprovement of the method in time can effectively improve the level of localgovernment debt audit. Most previous studies of local government debt are from amacroscopic perspective to study the debt risk and audit system，but the audit methodsof local government debt is still in the exploration. Therefore, consummates ourcountry local government debt audit technique theory and application of the system isof important theoretical and practical significance. Local government debt iscomplexity and variability and involves the problems in many areas. Based on therisk-oriented audit mode, we can not only conform to the requirements of currentnational auditing standards, as well as make it from rising compliance audit tomanagement audit.First of all, though reading a lot of literature on the local government debt audit,this paper summed up the current theories research. Secondly, according to threenational local government debt audit results announcement and the debt audit practiceconducted by local government agencies, this paper analyzes the current situation oflocal government debt audit, considers the audit lack of enough risk awareness,limited to the reality and compliance audit goals, need to improve the audit efficiency,and then analyzes the necessity and feasibility in applying risk guidance idea. Thirdly,this paper combined with the characteristics of local government debt audit in ourcountry, put forward the suitable audit process. Considering the characteristics of localgovernment debt，the procedure is divided into five stages in this paper：the auditproject selection stage，the audit planning stage，the audit implementation stage, theaudit report stage and the audit corrective stage. Each stage has been taken theconcept of risk based implementation. Finally, by a local government debt audit inAnhui province as an example, based on the risk guidance for application design, andthrough the comparison of effect evaluation shows that the contribution of this paper.The conceivable innovation of this paper lies in that regarding the localgovernment debt audit work mode as the angle of view, focusing on the improvement of audit efficiency and quality. Eventually, this research made up for the microprocess for local government debt audit in the lack of a lack of research.