The Research On Aduit Risk And Prevention Advice Of Asset Securitization Taking Far Eastern 2016-1 For Example

Along with the rapid development of China's economy,China's asset securitization has been developing and mature since its opening in 2005.In 2018,China's asset securitization market continued its good development trend of rapid expansion and steady operation in the previous four years.It is manifested in the improvement of regulatory policies,the formation and regulation of large-scale basic asset classes,the diversification of participating institutions,and the further application of Internet technology in the financial field.Driven by multiple favorable policies,asset securitization products have injected new power into China's capital market reform,making financial return to the source,better serving the real economy and serving the economic and social development.Under this situation,the audit work that provides reasonable assurance for the intended users of the financial statements of asset securitization products has become an urgent need of the participating institutions in the asset securitization market.China's asset securitization started relatively late,and the asset securitization audit work has not yet matured.As of March 18,2019,a total of 2822 single-asset securitization products were issued in the market with an issue amount of 589.78 billion yuan.However,only 57 accounting firms in the market participated in the asset securitization project,and they have served as auditors.There are very few,and the full-scale development of asset securitization audit work is imperative.Due to the complexity of its structural design and the large number of participants involved in asset securitization products,the difficulty of auditing the work of those with practical experience is increasing due to the ever-changing regulatory environment.In the face of audited products with complex accounting procedures and unexplained auditing standards,auditors must adopt a modern risk-oriented auditing model that can effectively control auditing risks and further improve auditing efficiency.Under this model,the identification and assessment of the risk of material misstatement becomes the core content,which can identify the key audit areas of the audited products,effectively identify and assess the risk of material misstatement and take further audit procedures,thereby reducing audit risk and improving Audit efficiency is what auditors should focus on.This paper adopts the method of literature research combined with case analysis.Firstly,it introduces the basic concepts of asset securitization,and sorts out and analyzes the relevant theories of audit risk.Then,it briefly sorts out the current situation of asset securitization in China and its The basis of the audit.Secondly,the“2016 Far East Phase I” financing lease asset support special plan case was selected for analysis to explain the possible audit risk points.Finally,this paper puts forward relevant suggestions on how auditors can guard against the risk of asset securitization audit.