Research On Audit Risk And Preventive Measures Of Backdoor Listing

On February 23,2018,China's Securities Regulatory Commission issued a new regulation that "the IPO may not be listed on the backdoor within three years after it was rejected." This regulation has increased the opportunity cost of IPO listing,which has caused many companies to withdraw their IPO listing applications and turn to the listing approach of backdoor listing.It can be seen that in the next few years,the number of backdoor auditing businesses that CPAs face will increase.Because the backdoor listing audit business has more auditing content,more complex auditing relationships,and higher audit results,this makes the CPA face greater audit risk in the backdoor listing audit work.Therefore,it is extremely urgent to thoroughly study the risk of backdoor listing audit and its causes and find out the corresponding preventive measures.This paper mainly studies the audit risk and preventive measures of the backdoor listing,and adopts the literature research method and the case study method.Firstly,it sorts out the research results of backdoor listing,audit risk and backdoor listing audit risk,as well as the characteristics of backdoor listing audit and its audit risk,laying a theoretical foundation for the following risk analysis and preventive measures of backdoor listing audit.Then,taking JH company backdoor listing as the research object,according to the modern risk-oriented auditing theory and audit risk model,it analyzes the auditing risks faced by CPAs in the backdoor listing audit work from the aspects of macro environment and governance structure,and analyzes the backdoor in depth.The cause of the listing audit risk.Finally,according to the risk of backdoor listing audit and its causes,the paper puts forward the overall measures to prevent the risk of backdoor listing auditing for the accounting firm level;proposes specific measures to prevent the backdoor listing audit risk for the CPA level;and proposes corresponding measures from the external regulatory environment.Improvement measures that constrain the behavior of accounting firms and certified public accountants,improve audit quality,and reduce audit risks.Through the research,this paper finds that the risk of backdoor listing audit is mainly reflected in the risk of imperfect internal governance structure of the backdoor company,the risk of insufficient operation capacity,the inadequate implementation of audit procedures,and the failure to design effective audit procedures.Therefore,in view of the risk of backdoor listing audit and its causes,this paper proposes measures such as improving the quality control system,strengthening the audit of the internal control of the enterprise,focusing on the audit of the ability to continue operations,and paying attention to the rationality of the enterprise value assessment results.