Study On The Impact Of Changes In Accounting Standards Of New Financial Instruments On Banking And Audit Risk

With the continuous development of China's economy,the role of accounting and auditing work in the market is increasing.Accounting standards are the rules and guidelines for accounting personnel to engage in accounting work.In accounting practice,the change and update of accounting standards affect the direction of accounting staff.The revision of China's current accounting standards adopts the general trend of convergence with international accounting standards,and the treatment of accounting practices has also become international.Starting from 2015,China revised its accounting standards related to financial instruments,and revised it in 2017.On March 31 of that year,China's Ministry of Finance issued the"Accounting Standards for Business Enterprises No.22-Recognition and Measurement of Financial Instruments"and"Accounting for Business Enterprises".Three new financial instrument accounting standards,Standard No.23-Financial Asset Transfer and Enterprise Accounting Standards No.24-Hedge Accounting.At present,scholars have done a lot of research on financial instruments,audit risk research,and risk-oriented audit theory models.Throughout the development process of accounting standards related to financial instruments in China,this paper will study and analyze the impacts of financial assets classification and measurement,financial assets impairment,fair value,and hedging accounting.Based on modern risk-oriented auditing theory,existing research indicates that the audit risk model consists of significant misstatement risks and inspection risks.The existing research has a lot of research results on financial instrument accounting standards and audit risks,but there are few studies on the impact of new accounting standards on audit risk.This paper is based on the newly revised financial instrument accounting standards,compared with the old ones to analyze the impact of changes on accounting,the possible earnings management behavior and motivation analysis,combined with financial instrument accounting theory,earnings management theory and modern risk.Oriented to audit theory,analyze the impact of new financial instrument accounting standards on audit risk,and take the combination of quantitative and qualitative analysis by China's banking listed commercial bank Shanghai Pudong Development Bank,and obtain the impact of its changes on the banking industry and audit risk.Therefore,it puts forward suggestions for dealing with changes in audit risk,and finally concludes that it provides theoretical basis and practical guidance for future CPA auditing financial enterprises or non-financial enterprises with large proportion of financial assets.In the new financial instrument accounting standards,many major aspects have been revised.Especially for financial enterprises,there are major adjustments in the classification and measurement of financial assets,impairment,and hedge accounting.And the composition of profits has a greater impact.Furthermore,in the future audit of CPAs,new challenges have been raised for the audit of financial assets and financial liabilities.The research results of this paper can be applied to the future audit work of certified public accountants,and the risks brought by the new financial instrument accounting standards should be met,so as to achieve the goal of reducing audit risk.This paper innovatively links the changes in accounting standards for new financial instruments with audit risks,and analyzes the impact of changes in accounting on audit work to provide recommendations for future audit work.The new financial instrument accounting standards were revised and released in March 2017.They were implemented in 2018 and are still in the updating stage.They are more time-sensitive and have a greater impact on the financial industry.They have great practical significance for the future research and development.