Research On Audit Risk And Countermeasures Of Small-network Loan Companies

Bankers survey report statistics of Statistics and Analysis Department of the People’s Bank of China in the fourth quarter of 2014-2017 showed that the average loan demand index of medium small and micro-sized enterprises was 60.4,and loan demand of small and micro-enterprises was higher than that of large and medium-sized enterprises in all quarters,however,bank loan approval index is only 46.4.It is obvious that there is a serious imbalance between the loan demand index of medium small and micro-sized enterprises and bank loan approval index.Among the 800 million working-age population in China,only 17.5% hold credit cards,without credit records nearly 660 million low-income people can not obtain loans from formal financial channels.Small-network loan companies made great contributions to alleviating the financing difficulties of small and medium-sized enterprises and individual fund requirements,and promoting the financial system construction.However,the problems of over-lending,repeated credit granting,improper collection,abnormally high interest rates and infringement of personal privacy were prominent,there was a grave financial and social risks.Until February 24,2018,the number of cash loans platform has reached 2800 in China.According to Network credit day eye statistics,the provinces across the country have only approved 276 Internet micro-credit licenses,of which Only 110(accounting for 4% of the total sample)small-network loan companies with a background of listed companies were included in the audit mechanism,there is no audit supervision in most small-network loan companies.But it involves the economic interests of many borrowers and has a wide impact.Once a problem arises,it can easily disrupt the economic order.Therefore,it is urgent to audit small loan companies to help small-network loan companies develop healthily and orderly under the current macroeconomic downturn,solve the financing problems of medium small and micro-sized enterprises,guide the development of private finance and improvesthe multi-level financial system.Under the guidance of the modern audit risk model and taking small-network loan companies as the research object,this paper studies the current situation of small-network loan companies.First of all,based on the analysis of the strategic risk faced by the small-loan industry,this paper deeply analyzes the impact of the political and economic environment on the operating activities of Company X,and then assesses the risk of material misstatement of Company X.At the same time,from the perspective of the auditors and the audit environment,this paper identifies and evaluates the audit inspection risk of company X.Secondly,according to the evaluation results of the risk of material misstatement,auditors put forward a feasible audit strategy,and found that although the implementation of audit strategy can reduce audit risk,there are still some difficulties in the implementation of audit.Finally,based on the difficulties encountered in the implementation of the audit,this paper puts forward the countermeasures and suggestions for improving the audit of small-network loan companies.The conclusion of this paper is as follows: First,there is a risk of material misstatement in Company X by analyzing the overall risk faced by the small-network loan industry and evaluating the authenticity and security of X company in information disclosure,employer compliance,integrity of information disclosure,authenticity and security of customer information.Second,according to the assessment results of the risk of material misstatement,it is found that the audit risk can be reduced through the rational use of analytical review,combination of observation and inquiry procedures,check and recalculate,but there are still problems to be solved.Thirdly,according to the result of the above analysis,this paper puts forward the countermeasures and suggestions for improving the auditing of small-network loan companies,which in turn is to improve the auditor’s competence,clarify the content of auditing and audit focus,enlarge the scope of the audit and make full use of computer auditing technology.