A Case Study On The Failure Of The IPO Audit Of Shine Wing And Dengyun Share

With the continuous growth of China's market economy,the competition between all walks of life has become increasingly fierce,more and more enterprises are trying to obtain the qualification to raise funds in the capital market through listing.In order to maintain the healthy and stable operation of the capital market,the Chinese securities regulatory authorities have put forward more stringent requirements for enterprises that require initial public offerings Key words: IPO audit failure cause countermeasure(Initial),and some enterprises that do not meet the listing requirements will attempt to qualify for listing through financial fraud.As the gatekeeper of the capital market,CPA should make strict control on the listing qualification of IPO enterprises,however,in the realistic work,due to various reasons,the failure of IPO audit cases occur repeatedly,which in addition to bringing losses to investors,but also to the steady development of the capital market will have a huge impact.Therefore,in order to develop the market order smoothly,we must study the reasons for the failure of IPO audit,and find out the relevant countermeasures,which has gradually become the focus of the CPA industry.By using the method of literature research and case study,this paper first summarizes the research results related to the failure of IPO audit at home and abroad and makes a detailed analysis,and after clarifying the definition of audit failure in this paper,the causes of audit failure are analyzed theoretically by principal-agent theory,information asymmetry theory and rational economic man theory respectively.Secondly,it briefly introduces the audit failure cases of shinewing and dengyun shares,and analyzes the reasons for the problems of IPO audit from three aspects of audit subject,audit object and external supervision environment respectively.The reasons for the audit subject include: The Certified Public Accountant omits the audit procedure,the CPA professional quality is not high and the lack of prudence,the accounting firm quality control system is not perfect;The main reasons for the Audit object are: There are problems in the governance structure and internal control system of the audited company,and the means of financial fraud are more hidden;External audit Environment: the external supervision environment weak punishment is insufficient,the audit industry competition is fierce,audit appointment and charging system is flawed.Finally,from the case of the failure of the IPO audit,the author summarizes its enlightenment to the CPA industry in China: CPA must improve the professional ethics quality,at the same time strengthen professional competence and professional prudence,accounting firms should change their own sense of competition,strengthen the establishment and implementation of quality control system;The government supervision Department should improve the supervision level and improve the audit appointment system.