Research On IPO Audit Risk Management

The sustained and rapid growth of the national economy has created a favorable external environment for the orderly development of the securities market in China.In the steady development of the securities market,there is a clear lack of market regulation in the securities market in China.For instance,the IPO of a very important stock market is an example.Since 2012,Frequently exposed all kinds of financial fraud cases,poor management led to continuous decline in performance.In the public perception,IPO seems to be a shortcut for these bad companies to cheat market funds.The harm of IPO financial fraud to the securities market is self-evident.It not only damages the normal market order,but also endangers the great harm from the perspective of the auditing executor accounting firms and auditing certified public accountants.IPO audit findings report the failure of the audit business IPO failed to undertake the audit task of the accounting firm in the face of SFC penalties at the same time,the integrity of the accounting firm will be severely weakened,the stock market investors have a serious distrust z These accounting firms have a negative impact on the healthy development of the CPA industry.Based on the above analysis,we first review the special verification process of the KL company financial verification team.Secondly,from the aspects of the unreasonable internal governance structure of the audited KL Company,the lack of the internal control system,the inflated profitability and fake financial documents Review the company's IPO financial data fraud process.On this basis,from the appearance of risk assessment,audit quality control and compounding,the concern about the IPO audit risk,the professional quality of the auditing task executor and the professional ethics and risk awareness,the paper analyzes the accounting firm's IPO Audit risk factors in the audit process.In view of the problems of JW accounting firms in the audit risk control of KL company IPO audit process,this paper respectively proposes to perfect the audit quality internal control system of accounting firms,to implement the audit quality control system,to enhance the CPA risk awareness,And enhance the risk awareness,as well as the establishment of an industry-specific corporate risk,enhance the sense of belonging of certified public accountants and so on.