Research On Audit Risk And Prevention And Control Of IPO Project In GEM Market

China's GEM market was born on October 30,2009.By the end of October 2018,734 companies had been listed on the GEM,with a total fund of 707.3 billion yuan.The amount of funds raised by IPO reached 382 billion yuan,and the financing results were remarkable.However,most of the companies to be listed on GEM are science and technology growth enterprises,with high technology input cost,uncertain capital profitability and high operational risk.Many enterprises that have not yet met the requirements of gem listing take the risk to cheat listing through financial fraud.In recent years,Wanfu,Green Land,Xintai Electric,Hailianxun and other companies have been exposed the financial fraud scandal of IPO,resulting in a series of serious consequences.It not only disturbs the orderly development of the GEM market and damages the interests of investors,but also damages the professional image of CPA,causes investors to question its authority and credibility.At the same time,accounting firms as intermediaries are bound to be implicated.Therefore,how to effectively prevent and control the audit risk of IPO project in GEM and improve the quality of IPO audit has become an important topic that CPAs must pay attention to at present.In view of this,this paper attempts to study the audit risks of IPO projects in GEM by sorting out previous research data,consulting relevant data of GEM and analyzing typical cases of IPO fraud.This paper is mainly divided into six parts: introduction,concept definition and theoretical basis,audit risks analysis,case analysis,audit risk preventive and control measures,conclusions and prospects.Specifically,firstly,it combs the relevant literature,defines the special concepts and puts forward the theoretical basis.Secondly,it analyses the particularity of IPO project in GEM audit risks,lists accounting firm's concern about the IPO project in GEM audit risks which are shown by empirical data and proposed by the Securities Regulatory Commission,and then discusses the sources of audit risks.Then,the latest IPO fraud cases of Y company are studied.According to modern risk-oriented audit,this paper analyses the audit risk control process of D accounting firm,evaluates the audit risk faced by D accounting firm,and analyses the causes of audit risk from the internal inspection risk and external industry supervision level of D accounting firm.Finally,the measures to prevent and control audit risks are put forward and relevant conclusions are drawn.Through the research of this paper,it is found that the current audit risk of IPO project in GEM is higher mainly due to the lack of in-depth investigation when accounting firmundertake business,insufficient audit quality control,insufficient comprehensive content of risk assessment procedures implemented by certified public accountants,relatively simple risk response measures taken,and poor supervision environment of audit industry.In order to reduce the audit risk to an acceptable range,the accounting firm shall standardize the business acceptance standard,carefully select audit clients,invest more human resources,guarantee the independence of audit and strengthen the quality control of audit when auditing the gem IPO project.In risk assessment and response,certified public accountants need to expand the scope of risk assessment procedures,improve the overall response measures and implement further procedures;Regulators should change the supervision mode of gem industry and increase the illegal cost of audit collusion.Therefore,the research in this paper can provide practical guidance for the audit risk prevention and control of IPO projects in GEM,and provide theoretical reference for the audit risk prevention and control research of other IPO projects.It is also expected that this study can provide reference for the healthy and orderly development of GEM market in China.