Research On Audit Risk And Audit Coping Strategies Of Internet Lending Platform

Nowadays,with the rapid development of the financial industry and the rapid rise of the Internet,the P2 P network lending platform has gathered a large amount of wealth management and wealth by virtue of its rapid financing speed,convenient cross-regional financial communication,low financing cost and high return on investment.The customer base of financing needs has played an increasingly important role in boosting the development of the financial industry.Since 2013,China's Internet lending platform industry has entered a period of rapid development.However,at the same time of rapid development,the risks inherent in the Internet lending platform are gradually exposed,and the problem platforms are emerging one after another.If the platform closes down,investors are likely to face the embarrassing situation of losing money.Due to the wide spread of the Internet and the rapid spread of the Internet,the number of investors in the Internet lending platform is extremely large,and may come from many different industries.Therefore,the crisis of the problem platform can easily cause widespread influence and bring huge economic order to the whole society.Injury will be extremely detrimental to the good situation of the current stable development of the country.In order to effectively protect the interests of investors,in order to promote the healthy development of lending to network platform,the China banking regulatory commission jointly with the many ministries in August 2016 launched “The network credit information intermediary business management interim measures”,and in August 2017 launched “The network credit information intermediary business information disclosure guidelines”.The measures and guidelines stipulate that online lending platforms must disclose their financial audit reports for the previous year to the public,meaning P2 P platforms will henceforth be subject to mandatory annual audits.As a result of grafting the Internet,the online loan platform has unique operational risk and information security risk,as well as credit risk and liquidity risk of the traditional financial industry.Moreover,it has not been subjected to mandatory auditing for less than one year,and certified public accountants lack experience in auditing the platform,insufficient understanding of the platform's major misstatement risk and its response.In this paper,based on the literature research,using case analysis,taking YiRenDai audit for example.First of all,understand the basic conditions of the enterprise,such as theenterprise profile,financial situation and operation strategy,then in-depth analysis of the company's financial information,the disclosure of business information,audit report data,combined with Internet platform lending industry characteristics,to analyze the audit risk of the YiRenDai,which contains the perspective of significant misstatement risk and inspection risk,and to conclude the Internet lending platform audit risk control strategy.Review the audit work of the project,and find out the shortcomings in it,so as to propose to improve the audit of the Internet lending platform.The conclusion of this paper is as follows: First,the risk of material misstatement mainly includes the risk of material misstatement at the financial statement level due to the unreliability of the platform's information system and operational risks;the occurrence of income and the existence of accounts receivable,the accuracy of costs and the valuation of bad debt provision The risk of material misstatement at the level of recognition,such as the valuation and apportionment of assets.The risk of inspection is mainly related to the unclear audit focus and insufficient auditing techniques.Second,the response strategies for major misstatement risks include: paying attention to the internal control of key business operations of the enterprise,strengthening audits of key subjects such as income,receivables,costs,and bad debts,and performing more audits on these key subjects.Procedures;emphasize the compliance of platform operations;pay attention to whether the calculation of bad debt rate and overdue rate is accurate,whether the disclosure is true,and whether the third-party depository is effective.The response strategy for checking risks includes improving the computer knowledge of CPAs and improving the industry supervision system.Thirdly,in response to the shortcomings in the audit,suggestions for improving the audit were put forward,including improving relevant legal norms,CPAs to improve their competency,clear auditing priorities and strengthening information disclosure.