Risk Evaluation Of Local Government Debt And Its Special Audit Research

In recent years,the scale of local government debt in China has been expanding and debt risk is becoming more and more prominent.In July 2017,the national finance conference clearly puts forward the requirement of "keeping the bottom line without systemic financial risk".At the end of 2017,the national economic conference puts "prevention and resolution of major risks" at the top of the three major tackles."Prevention of risk" has become the first challenge.It's important to the implementation of a well-off society.The control and prevention of local government debt risk is the key to win the battle of preventing and defusing major risks.In 2017,the ministry of finance published a file about the hidden debt,which highlighted the urgency of the local government debt problem.First of all,this paper expounds the connotation and characteristics of the local government debt,and studies the expansion from "local government debt" to "debt about local government ".According to the international practice and debt management practice,the paper classifies the local government debt,and analyzes the formation of local governments debt from the perspective of internal and external,historical and institutional mechanisms.Based on the announcement of local government debt audit results,the paper analyzes the scale,structure and investment of local government debt.Based on the interpretation and analysis of the traditional indicators about local government debt risk,the paper puts forward several new indicators of local government debt risk,calculates and analyzes these indicators in District C.Then the paper introduces and analyzes the general situation and trend of local government debt in District C.Taking the special audit project of local government debt risk in District C for example,this paper expounds the target and the content of the audit project.Based on the typical cases of audit announcement in recent years,the paper summarizes the typical problems of local government debt.Combined with the special audit report on debt risk in District C,this paper expounds how to use the special audit report of debt risk from three angles of local government leaders,debt authorities and debt lending subjects.Based on the above research content,this paper discusses how to improve the local government debt audit from the perspective of an auditor,and discusses how to improve the local government debt management.Finally,this paper systematically expounds a series of thoughts on the special audit of local government debt under the new situation.There are two innovation points in this paper.The first one is the combination of risk control and special audit.The paper combines quantitative analysis with qualitative analysis,combines the discovery of typical audit cases with risk management.The second one is to put forward new risk evaluation indicators in the debt data analysis.In this paper,seven key indicators of risk evaluation covering hidden debt statistics are put forward,expounded and analyzed.Combined with typical cases,the paper discusses the concrete application and the comprehensive evaluation of the audit object to the case.The main contribution of this paper lies in the expanding of the scope and perspective of debt audit.First,combined with the new situation of government debt,the paper researches and analyzes the new situation,new issues and new trends of hidden debt.Second,this paper tries to integrate risk control into the special audit,and the purpose is to strengthen the risk control of government debt.Through the key indicators of innovation,this paper discusses how to detect hidden debt problems timely,and close the blind area of the traditional debt audit effectively.This paper has two shortcomings.On the one hand,the evaluation may not be timely and comprehensive because of the timeliness and limitation of debt data.Data cited in this paper is from 2013 audit announcement and the special audit case selected in this paper is from the audit report of the District C,which located in the west of China.Those will affect the universality and representation.On the other hand,it is difficult to effectively evaluate suggestions' feasibility,because the suggestions about improve debt risk control management and auditing can not be tested fully.