The Research Of IPO Financial Fraud And Audit Failure

With the rapid growth of capital market in nearly 10 years,there were five events of IPO audit failure,which caused large impact extent and were widely concerned by all society.TianNeng Technology Co.,Ltd.which located in ShanXi Province was a member of the listing corporations without success.This paper takes TianNeng Technology Co.,Ltd.as the research case of IPO audit failure,based on three methods which are literature research method,comparative analysis method and case analysis method and guided by the theory of management and auditing.This paper consists of six chapters.The first part is the introduction.This part mainly includes the research background,purpose and significance of the study and the main methods used in this paper.And this part has systematically described many research findings of audit quality,audit failure and related reasons.The second chapter is the related theory.There are the three concepts of audit failure,audit risk and management failure and the difference and connection among these three conceptions.At last,it expounds four kinds of theories,which are the principal agent,the fraud triangle,the rational agent and the rent seeking.The third chapter is reasons of the failure of IPO audit.The reasons of audit failure are analyzed from four angles of IPO enterprises,registered accountants,accounting firms and external factors,with the possibility of subjective motivation analysis of each different subject of fraud.This paper expounds the negative influence caused by the different subjects of IPO audit failure.The fourth chapter is the suggestions to avoid the failure of IPO audit.These suggestions are put forward on the three aspects of the proposed IPO enterprise,accounting firms and auditors,and external environmental factors.The fifth chapter is the description of the case and analysis.This paper briefly describes the basic situation of enterprise technology,and expounds its means and methods of financial fraud by IPO.This chapter also describes the commission of the company and its senior management personnel and related agencies and individuals to make administrative penalties.In this part,from different perspective of economic agents,the paper analyzes the causes of IPO financial fraud and audit failure of TianNeng Technology Co.,Ltd..The sixth chapter is conclusion and outlook.This part summarizes TianNeng Technology IPO financial fraud auditing failure cases,and the innovation and deficiency of this paper.