Research On The Causes And Countermeasures Of Audit Risks Of Corporate Bonds Issued

In the current years,the Chinese government bond market has quickly grown to become the second largest bond market in the world,but the government bond market is also constantly evolving,the problem of bond defaults has gradually come to the fore,with the number of cumulative defaults increasing significantly.The CSRC has paid great attention to this problem and the "Measures for the Administration of Corporate Bond Issuance and Trading" revised in 2021 set forth higher requirements for accounting enterprises and other enterprises in the corporate bond issuance process,but did not provide detailed provisions on audit work and application standards in the corporate bond issuance process,so audit work in the corporate bond issuance process is still carried out in accordance with the IPO approach.In recent years,with the frequent occurrence of bond defaults,the community has become increasingly concerned about the risks of auditing corporate bond issues.By selecting Shandong Shengtong and considering and integrating the characteristics of both diversified business enterprise audits and bond issuance audits,we believe we have summarized the characteristics and audit risks of diversified business enterprise bond issuance audits that are important for auditors to manage audit risk in this type of audit work.On that basis,this paper addresses the following key questions:(1)What are the audit risks associated with the Shandong Shengdong corporate bond issuance audit by Zhongtian Yun & Co.(2)What are the characteristics of audit risks associated with the audit of diverse corporate bonds? How can these risks be effectively managed?Based on the modern risk-oriented audit concept,this paper intends to apply the modern audit risk management model,closely combine theory and practice,and use quantitative and qualitative means to analyse the risks in the bond issuance process of Shandong Shengtong’s listed companies by studying and analysing the financial data of Shandong Shengtong from 2014-2017 and the first three quarters of 2018,and explore the causes of them,and then propose The study found that the risks affecting the issuance of Shengtong’s bonds were not only the result of the issuance of the bonds,but also of the issuance of the bonds.The study found that the following risk factors have the greatest impact on Shengdong’s control of bond issuance.(1)risks arising from diversified operations,cash flow risks,debt servicing risks,risks arising from external guarantees and risks arising from improper management;(2)risks arising from asset and liability structure;(3)Audit risks arising from the auditor’s lack of knowledge of the debtor and its environment,failure to perform audit procedures,lack of auditor independence,and lack of due care.The causes of these risks include strong management incentives to commit fraud,failure of intermediaries to perform their duties and influence each other,and mutual guarantees within the industry.In view of the above audit risks,suggestions on risk prevention and control of corporate bond issuance audit are put forward as follows:(1)To deal with audit risks caused by fraud of bond issuing enterprises,strategies such as understanding the issuer and its environment can be adopted throughout the audit,focusing on financial indicators related to the debt paying ability of the issuer,comparing whether the structure of assets and liabilities is reasonable,and using analysis programs to identify anomalies by horizontal and vertical comparison;(2)To deal with audit risks caused by the mutual influence of intermediaries,relevant departments may clarify the responsibilities of each party and increase the severity of punishment;(3)To cope with the audit risks caused by the characteristics of the industry and bond issuance audit,auditors can pay attention to the mutual insurance situation of the industry,set up professional audit teams,standardize the implementation of audit procedures and other ways.Meanwhile,relevant departments can also issue relevant working rules to assist auditors.