The Audit Care Of The Enterprise Performance Deterioration Track In The Bond Default Crisis

When the bond default storm began in 2014,many enterprises have been deeply trapped in the bond default crisis because of the disappear of "the rigid cash".In these crises,it is not difficult to find the figure of" Performance Deterioration ".In the past,the attention to "Performance Deterioration”was mainly derived from IPO enterprises,lacks the research on the audit care in the event of default.In the bond market,the bond issuers have the similar purpose with the IPO enterprises,may also have the potential to manipulate profits to meet the requirements and to qualify for the debt issuance.But after the issuance,if the company facing the weakening external situation.The performance may have a speed "diving" against the original thought.If the auditor follow these changes of performance and take into account the company continued operating capacity,Non standard unreserved audit opinion may be issued.It will make the company continue to conceal its performance,which makes the real situation cannot be reflected to the rating agencies,investors,regulators and the whole market,and cause serious harm to the audit institutions themselves and enterprises inside and outside.Based on the related documents,this paper compare 2 representative cases,on the study of the audit care in performance deterioration in the bond default crisis.This paper find that the serious performance deterioration is the surface precursor of the bond default crisis.If the audit institution can perceive the audit risk of the factors in the trajectory and give due audit care,it can timely and accurately reflect the business situation in the audit report,to prove the independence and professionalism of the audit institution itself,ensure the right and interests of all parties in the bond market.This paper concludes that auditor should be aware of the hidden connection between the performance deterioration and the bond defaults crisis,by recognizing the performance deterioration and its audit risk,focus on the communication of key issues prevention,be on the guard of audit risks from multiple aspects,such as customer acceptance,people assignment,plans,inspection and review procedures.