Research On IPO Audit Risk And Prevention

With the rapid development of market economy,more and more enterprises choose to go public in order to attract investment and enhance their economic strength.According to wind data,from 2014 to 2019,there were 1320 initial public offerings in the A-share market,raising a total of 769.6 billion yuan.IPO is developing rapidly in China,but problems also follow,some enterprises in order to be able to meet the listing standards,in the IPO stage on the financial fraud.According to the punishment announcement on the official website of China Securities Regulatory Commission,from 2013 to 2017,9 enterprises including Yunnan green earth were found to have financial fraud.At the same time,relevant audit institutions were also punished for audit failure.In recent years,the frequent occurrence of financial fraud in IPO enterprises reflects that there are still many deficiencies in the auditing process of IPO in accounting firms in China.The failure of IPO audit will not only disturb the order of securities market economy,but also bring serious adverse impact on the reputation of relevant accounting firms.Therefore,the study of IPO audit risk prevention is of great practical significance to improve the quality of certified public accountants and maintain the order of market economy.This paper is based on modern risk-oriented audit theory,principal-agent theory and audit risk model,use the case analysis,literature research,and theory combined with practice,to nobunaga and certified public accountants to Huaiji Dengyun Auto-Parts(Holding)Co.,ltd.of IPO audit failure as a case,through combing the two sides of the violations,analysis nobunaga neutralization in the process of IPO audit risks,and puts forward prevention measures of IPO audit risk.The paper considers that :(1)IPO audit risk includes two aspects: material misstatement risk and inspection risk.Among them,the risk of material misstatement is mainly reflected in the defects in the internal control of the enterprise,the malpractice of the enterprise management and the risks in the external environment of the enterprise.The inspection risks mainly include the lack of professional ability of certified public accountants,the non-standard auditing process of certified public accountants and the failure of accounting firms to strictly implement the quality control system.(2)In view of IPO audit risks,corresponding preventive measures are put forward from the risk of serious mistake and the risk of inspection.Certified public accountants should fully understand the background of the auditees and strictly implement modern risk-oriented audit procedures.The accounting firm shouldorganize training to improve the professional quality of auditors and establish an effective audit quality control systemAt present,most of the research on audit risk focuses on the traditional audit,while the research on IPO audit risk is relatively less.It is hoped that this study can provide some reference for CPA to prevent IPO audit risk.