Research On Audit Risk Of Carbon Emission Trading

Carbon emission control has become the common action of all mankind.The establishment of the "Carbon Peaking and Carbon Neutrality" goal has brought about systemic changes in Chinese society,presenting both opportunities and challenges for economic growth.On July 16,2021,the national carbon emission trading market was launched online,and the power generation industry became the first industry to be included in the national carbon market.In this context,more and more enterprises are pursuing their own low-carbon development,actively fulfilling their social responsibilities,and deeply participating in the carbon emission trading market.The rapid growth of carbon trading has greatly increased the demand for carbon audits.Audit plays an important role in many fields with its inherent functions.At present,the carbon market gives enterprises the right to trade their remaining carbon emission amount based on the rigid constraints of total carbon emissions and quotas,thus making carbon emission rights an asset of enterprises.With the launch and development of the national carbon emission rights trading market,carbon emission rights will become an important asset that affects the judgment of the users of financial statements and is expected to become an important audit object.However,there are gaps in the existing research on the identification of risk points in carbon trading,and the lack of relevant audit theory is difficult to support the development and optimization of subsequent audit practice.Therefore,based on modern risk-oriented theory,this paper focuses on carbon emissions trading audit to promote the improvement of carbon emissions trading system and help the development of low-carbon economy and the construction of socialist ecological civilization.This paper adopts the case study method by studying the mechanism of carbon emission trading,and literature combing on three aspects of audit risk,carbon emission audit,and audit risk of carbon emission trading,based on modern risk-oriented auditing,analyzing the meaning and characteristics of audit risk of carbon emission trading based on the specific situation of high carbon emission enterprises,taking Datang International Power Generation as a case enterprise,analyzing the process of carbon emission trading Based on the analysis of the meaning and characteristics of carbon emission trading audit risk,Datang International Power Generation is used as a case study to analyze the factors that may become risk points in the carbon emission trading process and explore the causes of audit risk.Based on the audit risk perspective,the audit risk of carbon emissions trading is analyzed at two levels: financial statements and determinations of material misstatement risk.Based on the analysis of the case companies,it is concluded that accounting firms should pay attention to the operational risks,internal control,and management fraud of high carbon emission enterprises,pay attention to the revenue recognition,carbon allowance pledge financing,and carbon information disclosure of the relevant enterprises,and do a good job of project undertaking assessment,while improving their own standards,adopting correct accounting methods to obtain the real data of carbon emission of enterprises,and improving the audit procedures of carbon emission trading.The audit risk can be reduced.Based on the case of Datang International Power Generation,this paper proposes targeted measures to address the audit risk of carbon emissions trading,which provides reference for grid enterprises to better participate in and serve the carbon trading market,and promotes the sustainable development of enterprises,to carry out China’s "Carbon Peaking and Carbon Neutrality" goal and contribute audit power to the improvement of ecological environment and sustainable development of human economy and society.