Research On IPO Audit Risk Prevention

In our country,CPA has failed to play a good role in the IPO audit,and the audit risk of IPO is highly valued by the auditing community.The case of Z company IPO audit is selected as a research object in this paper to study the risk prevention of IPO audit in China,by the research method of combining theory and case.The first chapter is the introduction of the paper.Firstly introduces the research background and significance of the article.Then the paper studies the research status of IPO audit risk.Finally,the article introduces the research content and innovation point,research method and framework.The second chapter,the IPO audit risk prevention related concepts and theoretical basis,and introduces a general sense of audit risk and the related concepts of IPO audit risk respectively,and then review the theoretical basis of prevention of IPO audit risk,including principal-agent theory,asymmetric information theory and fraud issue dynamics theory.The third chapter is the case analysis of IPO audit risk,exist in 2016 IPO fraud by the China securities regulatory commission(hereinafter referred to as "CSRC")to perform compulsory delisting of Z corporation as the research object,analysis the means of fraud and the problems of H accounting firm,lastly the paper research the reasons for the risk in Z company IPO audit from three aspects: Z company,H accounting firm and external audit environment.The fourth chapter focus on preventing the risks of IPO audit on the basis of analysis of Z company case,and suggestions how to prevent the risks of IPO audit: the accounting firm should strengthen the IPO audit business risk prevention and control of the distance,improve staff professional ability,reduce staff turnover,to strengthen the construction of professional ethics,professional doubts,establish responsibility oriented personnel appraisal mechanism;We should ensure the independence of IPO audit,instruct the supervision system,improve the quality of IPO audit and strengthen the audit responsibility of IPO audit.The fifth chapter is the conclusion of the paper.The paper concludes that IPO audit risk is objective,and it may be increased by the imperfection of the risk prevention system in accounting firm,the unprofessional level of the auditor and the lack of moral quality.However,the risk of IPO audit can be prevented effectively by accounting firms and regulators,taking targeted measures.