Research On Risk Oriented Audit Of Overseas Investment Of State Owned Enterprises

With the Belt and Road policy promoted steadily,more and more state-owned enterprises go abroad,to participate in international market competition.According to the United Nations World Investment Report,in 2015 Chinese direct overseas investment reached $1 trillion and 760 billion,an increase of 38% over the previous.Since the implementation of the reform and opening up policy,Chinese overseas investment has developed rapidly,our country has become the world's largest investment countries.However,at the same time,the lack of the supervision of overseas state-ownedenterprises and assets is very serious.There are many kinds of risks in overseas investment,the situation is very complex,the system of overseas audit is not perfect,there are still many problems need to be solved in the implementation of overseas audit work.Therefore,it is necessary to strengthen the audit supervision of overseas enterprises and improve the relevant system of overseas audit,which is not only the requirement of the full coverage of the audit,but also to strengthen the supervision and management of overseas state-ownedenterprises.Firstly,after reading a large number of literatures of state-owned enterprises overseas investment and risk oriented audit,this paper summarizes the current theories of risk oriented audit and its application status in overseas audit of state-owned enterprises.This paper has analyzed the present stage of the audit of overseas state-owned enterprise,and then found that,auditors have not paid enough attention to the risk of the audited entity.Then,this paper uses the mining enterprises as an example,analysis the risk factors of mining enterprises in the process of overseas investment,and uses the means of matrix operations to calculate the weight of each risk factor.And then,this paper determines the level of risk based on the score of each risk factor,and allocates audit resources and implements audit work.This paper designs the process of the overseas investment audit of state-owned enterprises,and fully embody the concept of risk oriented in every steps.In this paper,the state-owned enterprises overseas investment audit is divided into four steps,namely,to assess the risk of the audited object,the stage of the audit plan,the implementation of the audit stage and the issue of the audit report.Finally,this paper takes China Minmetals acquisition of Australian OZ mining as an example,applies the risk oriented audit process.Through the above research,combining the risk oriented audit model with the overseas audit,we get the following suggestions.First,fully communicate with the host country of overseas investment to avoid some investment risks.Second,it is necessary to establish a sound risk analysis index system,and analyze the risk of overseas investment.Third,the government audit should cooperate with the state-owned enterprise internal audit and the accounting firm's social audit to complete the audit work of the state-owned enterprises overseas investment.