Research On The Reasons And Countermeasures Of The Failure Of IPO Audit

Since twenty-first Century,with the rapid development and continuous improvement of China's capital market,more and more enterprises hope to get financing and better development opportunities through the low cost of listing.But in China's capital market,the listing qualification has been by the parties to the arrogance of the scarce resources.However,the quality of listed companies is uneven,and even a lot of enterprises through the IPO fraud of financial statements and overstating financial data enable the company to achieve the goal of listing.The quality of the listed companies is worrying.In addition,a series of IPO financial fraud cases have a huge negative impact on the healthy and sustainable development of the capital market,which greatly compromises the confidence of investors.As we all know,in 2013,the CSRC launched the most stringent financial review on the history of listed companies.Many of the intermediary companies involved were severely punished,which brought a great impact to the accounting firms providing IPO audit services.The identification of risk points in IPO audit and the implementation of corresponding audit procedures for different types of risk points are increasingly becoming the focus of practitioners.In this paper,using the method of normative analysis and case analysis,first of all,from November 2015~2017 IPO of China is in the process of the Issuance Appraisal Committee veto in the case of selected rejected reasons related with audit business,combined with IPO in the CPA's duties,focus on feedback and self-examination report of the Commission of the the analysis,sums up the special risks of IPO audit in China in recent years.Secondly,through related cases,from the legal level,the professional ethics level,the relationship between CPA and the external environment,we deeply explore the reasons for the failure of audit under different risk points.Finally,from the work contents of IPO,the internal quality control of accounting firms,the financial verification and the external environment of accounting firms,we put forward measures to avoid audit failures.The research of this paper will provide suggestions for CPA to identify IPO audit risk points,help to improve CPA's sensitivity to IPO fraud and improve audit quality.According to the analysis of the deep-seated causes of the surface reasons and external environment legal reasons for the failure of the audit risk,and puts forward the corresponding measures,in favor of the CPA in audit work to better identify and avoid causing factors of audit failure,to avoid the negative effects of audit failure brought to the society and its own.However,due to the limitations of the case study and the lack of practical experience,the comprehensiveness of the cause analysis and the maneuverability of the proposal need to be examined.