China 's Private Enterprises IPO Audit Risk Management

With the rapid development of China’s capital market, the securities market itself is not mature gradually and obviously. The imperfection of governance mechanism of listed companies, the dereliction of duty of accounting firms and other intermediary institution, the insufficiency of measures and potency dimension of government supervision and the poor practice environments of certified public accountants result in the fraud listed, malicious packaging, information disclosure, insider trading and other frequent phenomenon, which is injurious to the interests of public investors seriously and disturb the healthy development of securities market. In particular, there is a great mass fervor about the listed private enterprises in recent years in our country and the number of private enterprises IPO audit failure case is increasing gradually, as a result, the number of audit lawsuit is also increasing, which highlights China’s private enterprises IPO audit work is not standard and the audit risk is bigger and bigger. So, how to manage private enterprises IPO audit risk effectively has become the attention focus of CPA and the social public already.Under the background of private enterprises IPO audit risk, research on this field is also paid a high attention increasingly in our country. But most studies focused on the earnings management in the research of this field to analyze the agent of private enterprises listed on fraud. There are few research literatures about the private enterprises IPO audit risk, which also mainly focus more on the broad audit risk theory and less on the practice of private enterprises, so there is a lack of argumentation and case study of the system. In this paper, on the basis of IPO audit risk research, we shall subdivide into private enterprises. Because the private enterprise plays an important role on China’s economic development, especially after the "two sessions" in March2014conference held, during which implemented the private enterprises admit business areas, interest rate market, improvement of the modern enterprise system, private enterprises meet the "spring" of new development and there will be more and more private enterprise raise funds through IPO. So to study IPO audit risk for the private enterprise fits reality and there is a certain sense. From the point of IPO audit risk, the audit subject, audit object and external environment, and the combination of private enterprises and the characteristics of IPO audit to make research about the management of private enterprises IPO audit risk. To summarize the points that must be noted during the audit and choose the "Lv Da Di" cheating listed case as a model to analyze, which last for a long time, with a degradation of nature and illegal recruitment of amount of money. According to the theory of the applicable case, giving management strategy for the IPO audit private enterprise risk.