Research On Auditing Risk And Countermeasures Of Reward-based Crowdfunding

As a novel business model,reward crowdfunding has immeasurable commercial value in the field of innovation and entrepreneurship.It not only helps sponsors raise funds,test the market,promote the brand,but also helps supporters get new personalized services that meet their needs.At the same time,reward crowdfunding have the sense of participation in R&D,which is of great significance for promoting the development of SMEs and supporting popular entrepreneurship and innovation policies.China's reward-based crowdfunding began to emerge in 2011 and started to show explosive growth in 2014.However,under the rapid expansion of the industry scale,there are huge problems lurking.As of the end of 2016,up to 113 out of the 188 platforms involved in reward crowdfunding business were issue platforms.The fierce competition in the industry,some nonstandard operation of the platform,the fraudulent issue of the initiator,the lag of legal supervision,etc.make us think about how accounting firms can use the identity of an independent third party to play a regulatory role in the reward-based crowdfunding,and promote the healthy and sustained development of the industry crowdfunding industry.At present,most studies in China are still confined to the construction of the audit framework for Internet finance as a whole,and the research on reward-based crowdfunding auditing is very scarce.In view of the above problems,this article selects the JD crowdfunding for the following reasons: First,JD crowdfunding got the best performance,its audit risk research for the entire industry audit research can play To lead the role,aroused everyone's concern about reward crowdfunding audit.Secondly,the number of applications for the JD crowdfunding project is huge,and there are many samples for research,which can serve as a reference for other platforms.Third,JD crowdfunding is relatively standardized in terms of operation and has a high process pattern.Therefore,it has a model role in its audit.This article focuses on the audit risk of JD Crowdfunding,and puts forward suggestions for improvement on these issues.It hopes that it can be meaningful to the development of JD Crowdfunding and it can also serve as a reference for the development of the entire reward-based crowdfunding in China.This article is divided into six parts,the main content is as follows.The first part is introduction.This section introduces the research background and research significance of this article,relevant research status,the research ideas and research methods of this article,as well as the innovation and deficiency of this article.The second part as a solid foundation in this article introduces the theoretical basis of the reward-based crowdfunding audit,including the related concepts and features of the reward-based crowdfunding,the concept,content and characteristics of the reward-baseded crowdfunding auditing,and the audit risk model cited in this article.The third part introduces the basic situation of JD crowdfunding and analyzes its environment,including the external environment,business environment and financial environment.The external environment mainly includes the reward crowdfunding industry status,the operating issue of the rewardbased crowdfunding,the legal environment and the regulatory environment;the operating environment mainly includes the equity structure and internal control of the JD crowdfunding;the financial environment mainly includes funds from the JD crowdfunding.The settlement method and platform profit method lay the foundation for analyzing the audit risk of JD crowdfunding.In the fourth part,the audit risk model was used to analyze the major misstatement risks and inspection risks of the JD crowdfunding audit.The major misstatement risks mainly included the risk of material misstatements that originated in the external environment,such as legal regulatory risks and reward crowdfunding industry risks,etc.,and risks of material misstatement from the operating environment,such as risks from the VIE structure,reputational risks from lax audits,etc.and misstatement risks from the financial environment,such as accounting issues.In the fifth part,the author puts forward the suggestions of responses for the audit risk of JD crowdfunding from the perspective of the accounting firm.In the sixth part,we got conclusions for this particle.