Case Study On Audit Of Zx Securities Company’s Asset-backed Special Plan

Asset securitization is an important financial instrument emerging in the 20th century,which has been rapidly developed and used worldwide.In the process of its rapid development,it has exposed a lot of risks,and the amount of default has gradually increased,so its audit and supervision have become increasingly important.At present,the types of asset securitization products in the Chinese capital market are increasingly rich and the amount is increasing rapidly.However,the audit of asset securitization products is carried out according to the general financial products at present,and there is no audit standards or guidelines directly targeting the asset securitization audit,which makes it less likely to find the risks in the audit supervision.It is necessary to identify,discover and report the risk of material misstatement that may occur during the duration of asset securitization in order to increase the dependence of investors on the financial information of products and the usefulness of decision making.This paper mainly studies the audit of the annual report during the existence of the asset-backed special plan(namely enterprise asset-backed securities).Cutting into information asymmetry theory and modern risk-oriented theory,the paper reviews the development of the special plan of the asset-backed project managed by securities companies in our country and the status of the audit,and takes the audit process of the asset-backed project managed by CITIC Securities company as the case object to conduct research and analysis.At present,for the asset support special plan of the securities company as the manager,the audit is mainly carried out according to the general asset management business audit process.The case selected in this paper is audited by a mature accounting firm in the market,which mainly reviews the internal control,Going concern ability,financial statement level and identification level of the securities company,and meets the general requirements,However,insufficient attention has been paid to the risks and value changes inherent in assets in the asset support plan,resulting in the following shortcomings: insufficient emphasis on cash flow prediction and analysis,insufficient impairment testing of underlying assets,single channels for obtaining audit evidence,and room for improvement in the effectiveness and efficiency of audit manuscript support.In response to these issues,this article proposes the following improvement suggestions,which can provide some reference for regulatory and practical circles.This paper believes that relevant audit guidelines specific to Securitization business can be issued to help the sustainable and healthy development of Securitization market.This article believes that audit guidelines can focus on the penetration of underlying assets,focusing on the authenticity of asset pools,impairment of underlying assets,and cash flow forecasting analysis.At the same time,this paper also believes that the problems in the audit of Securitization products can be improved by strengthening the supervision of the firm,granting access to information and training auditors.