A Study On XT Electrical Incorporated IPO Audit Risk Of GEM Companies

In 2009,China Securities Regulatory Commission announced the establishment of the GEM market,as independent of the main board market outside the second board market for SMEs and high-tech industries to provide development funds,financing channels,and constantly improve the investment and financing system,improve China’s capital market.Due to the low threshold of listing on the GEM in China,the market development of the Growth Enterprise Market is rapid and the market value is higher and higher.However,the characteristics of high growth and high risk of GEM listed companies are creating high returns to the capital market But also led to a huge risk,as to be listed in the GEM an important part of the IPO audit is facing greater risk.Therefore,based on the lessons learned from the development of other countries and regions,China’s GEM market needs to improve the legal system of capital market and strengthen supervision according to China’s special national conditions,combined with China’s market environment.As a listed company on the GEM market,especially those who wish to list on the GEM,the audit risk in the IPO process directly limits the results of the IPO application.Therefore,the research on the IPO audit risk of the GEM has theoretically The necessity of reality.With the rapid development of China’s capital market,the GEM market has gradually grown,more enterprises in the GEM application IPO listing.As a result of the IPO in China to involve a number of industries and institutions involved in cooperation and cooperation,is a very complex process,increasing the difficulty of IPO audit,accounting firm bear a great risk.The future development potential of the national economy and whether the GEM listed companies can be healthy and orderly development is closely related to how to effectively avoid the GEM listed companies IP0 audit risk,improve the quality of IPO audit has become the current hot topic.And the analysis of the characteristics of modern risk-oriented auditing and GEM IPO audits of GEM listed companies will help enhance the firm’s ability to respond to risks.Based on the related theories,the author uses the methods of deductive method,case analysis method and data analysis method,and uses the audit risk model,which is based on the audit theory and the related industry.Based on the modern risk-oriented audit theory,this paper briefly analyzes the auditing risks that may occur in the IPO audit process of the listed companies,and then analyzes the significant changes in the financial performance of the XT before and after the listing of theGEM and the audit risk during the IPO process A detailed in-depth analysis,and finally based on the XT electrical case from the major misstatement of risk and inspection of wind detection in two aspects of the GEM listed companies to prevent IPO audit risk related to the hope that to prevent China’s GEM IPO audit Risk to provide some reference.