Risk Prevention And Control In IPO Audit

With the rapid development of China’s economy and the expansion of company size, the IPO(Initial Public Offerings, called IPO) become an important choice for more and more companies to raise funds and expand the size of the company. However, with the rising heat of the IPO, more and more problems gradually exposed in the process of IPO. Many companies want qualify for listing by whitewashing financial statements, inflating assets, profits and other ways. But the CPA has failed to find these unusual things in the finance of company and issued an unqualified audit report. Such behaviors are large risks for an accounting firm. For the accounting firms whose audit client are IPO company, the high risk of IPO make accounting firms’ audit risk increases invisible when undertake such business. The accounting firms is important for the stabilization of the development of the market economic, and people are more concerned about accounting firms’ audit liability and audit risk. IPO audit are particularity, so we must study how to strengthen the accounting firm IPO audit risk prevention and control comprehensive and profound, in order to control and avoid audit risk effectively, improve audit quality, and promote the health progress of accounting firms and steady development of society and economy.This paper is based on the theory of audit risk, through a combination of the concept and characteristics of IPO project audit, analysis several sources of IPO audit risk, combine with the project undertake and the audit process of IPO audit of A accounting firm, evaluate the effectiveness of IPO project audit risk control of A accounting firm, research and summarize the problems, and eventually propose an effective method to control and prevent the IPO project audit risk.