Case Research On Applying Risk-oriented Audit Method To IPO Audit In WS Company

During recent years, a lot of IPO enterprises have gone public by financial fraud. Of which, some enterprises have been finally discovered and punished by the law by strict supervision evaluation. However, such a chaotic phenomena in IPO market is enough to arouse our attentions. As an important intermediary organ to assist enterprises in going public, accounting firms inspect and evaluate the finance of enterprises, which have direct responsibilities in audit risks of IPO enterprises. Financial frauds of XINDADI, SHENGJINGSHANHE,WANFU BIOTECHNOLOGY fully show that the audit market has certain defects in risk control. Traditional audit mode cannot adjust to the increasingly complicated economic environment. China has properly introduced the concept of risk-oriented audit. By the method of case analysis, this paper systematically shows how accounting firms apply the risk-oriented audit method to IPO audit, and also puts forward concrete suggestions to implement, which offers a reference for the theoretical and practical circles. This paper is divided into four parts: The first part puts forward the background of selected topic and research significance, introduces the research thoughts and innovations and deficiencies of this paper, summarizes relevant risk-oriented audit theories, IPO audit research results both at home and abroad, which offers theoretical supports for the further researches. The second part introduces the connotation, characteristics, procedure, audit mode of the risk-oriented audit and theoretical foundation, and also introduces the definition, characteristics and risk sources of IPO audit at the same time.The third part analyses the IPO audit case of WS enterprise which bases risk-oriented audit method, Firstly, introduces basic situation of WS enterprise and RH Certified Public Accountants, and the applying of the risk-oriented audit method in RH Certified Public Accountants. Secondly, introduces the concrete courses of IPO audit in WS company which is guided by risk-oriented audit method. The fourth part shows audit procedures and safeguards which is necessary for applying the risk-oriented audit method to IPO audit, auditors should strictly execute audit procedures, at the same time,to enhance the safeguards we should change audit concept, enhance the professional level, enhance the system of review, establish risk database.