china-audit-xls

china-audit-xls

Purpose

Audit A-share Financial Model — comprehensive quality checks for Chinese equity financial models.

Data Sources

Tier 0 — Wind (most comprehensive paid data)

• Coverage: A-shares/HK & US stocks/funds/indices/bonds/macroeconomics/research reports/analytics (44 tools)
• MCP service:wind-mcp(requires WIND_API_KEY key, starting with ak_ )
• Advantages: Broadest market coverage, most comprehensive data, includes research reports and quantitative analysis
• Key application:https://aifinmarket.wind.com.cn/#/home

Tier 1 — iFind (paid precise data) / AkShare MCP (Tier-2 free alternative)

get_financials(ticker, "income")     → Actuals for cross-check
get_financials(ticker, "balance")    → BS for cross-check
get_financials(ticker, "cashflow")   → CF for cross-check
get_quote(ticker)                    → Market data

Secondary Sources

• Cninfo — source financials
• Audit report — reference data

Workflow

Step 1: Structural Audit

Model structure checklist:

Area	Check	Pass Criteria
Cover page	Company, date, version	Present and accurate
Assumptions	All key inputs centralized	No hardcoded values in calc
Historicals	All periods populated	3-5 years
Forecast	Explicit forecast period	3-5 years
Valuation	DCF, comps, football field	All methods present
Checks	Sum, balance, cross-ref	All checks green
Documentation	Methodology notes	Clear and complete

Step 2: Formula Audit

Formula checks:

Check	Description	Pass Criteria
No hardcodes	All inputs in assumptions	✓
Consistent formulas	Same formula across periods	✓
No circularity (unless intended)	Circular refs flagged	✓
Error handling	IFERROR used where needed	✓
Named ranges	Key cells named	✓
Sheet references	Cross-sheet refs work	✓
Broken links	No external links or all work	✓

Common hardcodes to find:

• Growth rates embedded in formulas
• Multiples typed into cells
• Shares outstanding hardcoded
• Tax rates not in assumptions

Step 3: Historicals Cross-Check

Cross-check against source data:

Line Item	Model	iFind / AkShare / Cninfo	Difference	Explanation
Operating revenue
Operating cost
Net profit attributable to parent
Total assets
Net assets
Operating cash flow

Cross-check tolerance:

• Revenue, profit: ±2%
• Balance sheet: ±1%
• Cash flow: ±3% (timing differences)

Step 4: CAS Compliance Check

CAS-specific checks:

Check	Description
Revenue net of VAT	Operating revenue not gross
R&D expensed	Not capitalized (unless criteria met)
Tax calculation	25% / 15% rate applied correctly
Minority interest	Separated from parent equity
Government grants	Correct classification
Contract liabilities	Recognized appropriately
Credit impairment loss	CAS 22 model applied

Step 5: Balance Sheet Integrity

BS checks:

Check	Formula	Pass
BS balances	Assets = L + E	✓
Cash flow ties	Ending cash = Beginning + Net CF	✓
Debt schedule	Short + Long = Total debt	✓
Share count	Shares × Price = Market cap	✓
Minority interest	Correct % applied	✓

Step 6: Forecast Logic Check

Forecast quality:

Check	Description	Pass
Growth reasonable	Within industry range	✓
Margins stable	No unexplained jumps	✓
Working capital	Trends with revenue	✓
CapEx	Consistent with depreciation	✓
Debt service	Can be serviced from FCF	✓
Dividend	Consistent with policy	✓

Growth rate benchmarks:

Metric	Conservative	Base	Optimistic
Revenue growth	5-10%	10-20%	20-30%
Margin expansion	0 ppts	0-2 ppts	2-5 ppts
Tax rate	25%	25%	15% (if High-Tech)

Step 7: Valuation Check

Valuation audit:

Method	Check	Pass
DCF	WACC reasonable (6-10%)	✓
DCF	Terminal growth < GDP growth	✓
DCF	FCF positive in base case	✓
Comps	Peer group appropriate	✓
Comps	Multiples reasonable	✓
Football field	Min/median/max consistent	✓

WACC components (China):

Component	Typical Range
Risk-free rate (CGB 10Y)	2.0-3.0%
Equity risk premium	6-8%
Cost of debt	3-6%
Tax rate	25% (15% for High-Tech)

Step 8: Sensitivity & Scenario Check

Sensitivity audit:

Check	Description
Sensitivity tables	Key variables tested
Scenarios	Base / Bull / Bear
Tornado chart	Key drivers identified
Monte Carlo (if used)	Assumptions reasonable

Step 9: Common A-share Model Errors

Error checklist:

Error	Detection	Fix
Revenue should be tax-inclusive	VAT not removed	Divide by 1.13
Incorrect tax rate	Wrong rate applied	Verify High-Tech status
Unit error	Thousands vs ten thousands	Standardize
Quarterly aggregation error	Q+Q ≠ Annual	Check sum
Growth rate calculation	Wrong base period	Verify formula
Minority interests	Missing	Add if applicable
Depreciation period	Wrong	Check FA notes

Step 10: Audit Report

Standard audit output:

【模型审计报告】[Company] [Date]

一、结构检查
   [Structure assessment]

二、公式检查
   [Formula audit results]

三、历史数据核对
   [Cross-check results]

四、CAS合规检查
   [CAS compliance]

五、预测逻辑检查
   [Forecast quality]

六、估值检查
   [Valuation audit]

七、发现的问题
   [List of issues with severity]

八、建议修复
   [Recommended fixes]

总体评价: [Pass / Pass with conditions / Fail]

Quality Checks

Before completing:

• All structural checks passed
• No hardcodes found
• Historicals cross-checked
• CAS compliant
• BS/CF integrity verified
• Forecast logic sound
• Valuation reasonable
• All issues documented

Data Source Mode Switch: Set env var IFIND_DATA_SOURCE_MODE to control data source preference.

• ifind-only (strict): Use iFind only, error if unavailable
• ifind-fallback (default): iFind preferred, fallback to AkShare
• akshare-only: Skip iFind, use AkShare only
• wind-only: Wind only, error if unavailable
• wind-fallback: Wind first, fallback to iFind → AkShare