Analyzing The IPO Failure Based On Sponsors’ Financial Verification Perspective

The sponsor system means that a sponsor of a securities issuer must hire sponsors to obtain sponsorship qualifications for its securities issuance and listing transactions,in order to guarantee that its securities meet the conditions of issuance and listing conditions.In essence,sponsors are The role of quality supervision plays a key role in the issuance of securities.During the IPO process of the enterprise,various financial problems will be encountered.The implementation of the IPO financial verification is one of the key tasks of the sponsor institution.In 2012-2014,Chinese IPO experienced a restart after two years of suspension.At this stage,most of the IPO analysis of the listed companies is based on the data before the2014 IPO financial verification.After the financial verification,the research There is little research on the legal level,and the analysis of specific cases and proposals for improvement based on the new verification requirements is almost impossible.The purpose of this paper is to increase the latest IPO data based on the sponsor’s financial verification perspective and to ensure the timeliness of the research results and conclusions.A large number of relevant literature and research materials on the issue of a large number of listed companies requesting an initial public offering of stocks have revealed that the core issue in the IPO audit process of enterprises is financial normative issues.The key to determining whether an IPO audit can pass is the legitimacy and compliance of the company’s business operations,financial normativeness,and growth.It is also very important whether the company has a good profitability and the risk control of the fundraising project.This article analyzes the evolution of the IPO audit process and the IPO audit mechanism at the current stage,and further explores the key links and precautions in the IPO audit process.The study believes that regardless of the capital market environment and how the review system evolves,applying for an IPO must ensure that the company has good profitability,standardized financial management,and rational use of fundraising funds in a scientific way.The article takes Beijing Pinen Technology Co.,Ltd.as a typical case to analyze its problems in financial verification,such as: non-standard financial accounting;insufficient continuous profitability;insufficient disclosure of information,etc.,and proposes that the sponsor must supervise company regulations.Financial management system,companies must continue to improve the level of innovation to protect their profitability,establish a scientific risk control system,further improve the information disclosure system,improve information transparencyand other rationalization proposals.This study is expected to provide reference value for the sponsor to guide the listed companies to improve the financial accounting standards,ensure the quality of accounting information,and improve the efficiency of the audit.