Study On Audit Risk Of Urban Investment Issued Bonds

Since China’s reform and opening up,economic development by leaps and bounds,and the scale and Public infrastructure has been expanded in scale and volume,thus We will increase demand for funds for urban construction.However,due to the limitation of laws and regulations,local government is limited financing channels,therefore the local government set up city investment company,raise money for public infrastructure.But in many cases,in order to successfully issue urban investment bonds and reach the bond issuing qualification line,urban investment companies whitewash the financial statements or have ambiguous recognition and measurement of some accounting items,This may result in material misstatement of the financial statements.The financial statements are materially misstated will lead bond investors to make investment decisions based on wrong financial information,affect investors’ analysis and judgment,and then affect their immediate interests.Therefore,it is necessary to study the audit risk of urban investment bonds to reduce the audit risk,so as to provide a reasonable guarantee for whether there is no material misstatement caused by errors or frauds in the financial statements and protect the interests of investors.By referring to the theory of audit risk,this paper applies the theory of audit risk to the audit practice of bond issuance by urban Investment Bank,and refers to the whole process of YT accounting firm’s audit of C company,that is,from undertaking business,risk identification,risk assessment and risk response to completing the audit work and issuing the audit report.And analyze the specific identification of important accounting items such as inventory,monetary funds,accounts receivable,etc.,using qualitative analysis and quantitative analysis to analyze the rationality and effectiveness of the specific process of risk identification,risk assessment and risk response.The methods of reducing and preventing audit risk in the audit process of this kind of enterprises are put forward.Explore the unreasonable and insufficient place in the process of risk identification and risk response in the audit of urban investment and bond issuance,Some reasonable and constructive suggestions are put forward to optimize and perfect the auditing practice of urban investment bonds.