UDC 657.6

THE RISKS OF BANK ASSET SECURITIZATION FROM AN AUDITOR’S POINT OF VIEW

Novikov Ivan Vladislavovich
Financial University under the Government of the Russian Federation

Abstract
The article describes the risks inherent in the operations of asset securitization from the point of view of an auditor. Securitization process is impossible without risks. Classification of risks
considered in scientific and specialized literature associated with securitization transactions, characterize primarily economic, legal and organizational aspects of this kind of activity.
In accounting and auditing of securitization transactions it is not always convenient to use these classifications, and in many cases they are not applicable in practice.
Classification of risks in terms of their causes is certainly useful in the process of securitization transactions audit, but not sufficiently reflects a specific way of thinking typical for the auditors. In order for the auditor to confirm the prerequisites for the formation of financial statements or other financial information it is important to understand what exactly may be distorted.
Herewith the question, why distortion occurs, despite its importance, becomes secondary.
Based on these considerations, the classification of securitization risks in terms of possible misstatements of the financial information has been developed. To understand what substantive procedures may be developed in the future in the audit of securitization operations, a classification matrix is proposed.

Keywords: cash flow structure risk, classification of risks, collateral risk, default risk, evaluation of accounting and internal control systems, legal and regulatory risks, liquidity risk, market risk, operational risks, risk management system, securitization process, substantive procedures, tax risks


Article reference:
The risks of bank asset securitization from an auditor's point of view // Economics and innovations management. 2016. № 4 [Electronic journal]. URL: http://ekonomika.snauka.ru/en/2016/04/11415

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