Research On The Audit And Risk Prevention Of Bond Issuance Projects Of Local Government Financing Platforms

The Nineteenth National Congress of the Communist Party of China proposed that China’s economy needs steady and high-quality development,so the stable development of the economy needs to expand domestic demand,local governments provide relevant platforms,and urban investment companies of local governments come into being,and the issuance of bonds has become a financial tool for financing local government financing platforms.Some urban investment companies have made them meet the standards for issuing bonds by whitewashing their financial statements and the operating conditions of packaged assets,which has increased the difficulty and audit risk of accounting firms.According to the Rules for Self-Discipline in the Interbank Bond Market,the Dealers Association will initiate a self-discipline investigation into whether the issuer and relevant intermediaries have effectively disclosed risks and fully disclosed them in the course of their business development,and whether they have strictly performed their relevant duties.Accounting firms auditing the government financing platform bond issuance project audit will bear a lot of risks,and its risk identification and risk prevention in the audit process are also particularly important.Based on the modern audit risk model,principal-agent theory,audit conspiracy theory,and credit risk theory,the case company’s bond issuance project selected in this paper explores the risk identification of the specific identification level determined by Z Accounting Firm in the audit process,analyzes its audit risks and specific countermeasures,and improves the auditing risk prevention ability of accounting firms.By analyzing its specific financial situation and underlying asset logic,combined with its special business model,this paper identifies the risk focus of its specific level of audit,namely the authenticity of income and cost,the quality and turnover capacity of inventory assets,the identification of inventory settlement account,the integrity of accounts receivable recoverability and bad debt accrual,the identification of receivables account,the special verification of solvency,profitability and potential risks of financing guarantees,and specifically analyzes and proposes relevant preventive measures.