Research on Audit Risks and Countermeasures for Integrated Plant-Network Wastewater Treatment Projects under the Concession Model

With the Pricing Mechanism as the Core

Abstract

Audit risks in integrated plant-network wastewater treatment projects under the concession model occur most frequently in the pricing process. Constrained by a dual structure characterized by information asymmetry between government and enterprises, the concealment of sewer-network assets, and the difficulty of quantifying performance, the prevailing cost-plus pricing model can easily lead to inaccurate pricing, such as strategic cost inflation by enterprises and delayed price adjustment. These problems further intensify fiscal fund risks and government-enterprise bargaining. As the central hub maintaining the closed funding loop of the project, the pricing mechanism connects investment and financing, cost authenticity, and performance achievement. Therefore, auditing should shift from routine compliance review to whole-process auditing. The audit threshold should be moved forward to the investment, financing, and construction stages. Technical methods such as geological comparison and geophysical spot checks should be introduced to conduct penetrating verification of the authenticity of equity capital and the cost of hidden works, thereby locking in the cost base. Meanwhile, the integration of business and finance and digital auditing should be promoted. Network performance indicators, including COD collection concentration and structural integrity rate, should be set as preconditions for price adjustment. In this way, a regulatory closed loop of pricing based on true costs and payment based on comprehensive performance can be established. At the institutional level, concession agreements and life-cycle cost benchmarking models should be optimized so as to safeguard fiscal security and improve the effectiveness of water environment governance.