Initial Public Offering Enterprise Audit Risk Research

Enterprise IPO has been a hot topic for investors,IPO project with high intermediary fees also contributed to the IPO audit which has become one of the mainwork of certified public accountants.But with the advent of a series of fraudulent listing cases,investors are increasingly skeptical about whether the certified public accountants can provide fair and reasonable audit opinion as an independent third party.The frequent occurrence of audit failure cases gives the CPA industry a reputation crisis.Unlike general Auditing,the IPO audit has the characteristics of long project cycle,great difficulties on work and the complex relationship for work.How to deal with IPO audit risk has become one of the research topics of many scholars.This paper mainly uses the induction method,the literature review method and the case study method to the research.Firstly,this paper summarizes the previous research results,combined with the specific situation of the IPO published by the CSRC,and makes a conclusion about the factors that affect the IPO audit risk.And this article also do a case study on the Risk of Material Misstatement and Detection Risk;Secondly,this article makes a case analysis combined with the case of fraud listed of Xintai Electric investigated by the SFC,and also makes a audit risk analysis on the risk respectively from the Xintai Electric fraud and Xin Tai Electric listed in the process of the existence of a major misstatement risk,and Beijing Xinghua to evaluate the risk of inspection risks faced by Xintai Electric's IPO audit practice and execution attitude.Finally,the paper analyzes the risk of IPO audit and gives the relevant recommendations.It is hoped that the research of this paper will provide reference for the auditors' risk of the relevant accountants and other relevant practitioners.This article mainly has the following innovations: Firstly,it summarizes the impact of major business errors in the two major aspects of risk and six specific factors;Secondly,this article makes an analysis about the previous summed up the risk of material misstatement and detection risk,combined with Xintai electrical case and make a totally new research on the IPO auditing risk.