Backdoor Listing Audit Risk And Prevention Mechanism Research

Since the 1990s,China's capital market has continued to develop,listed financing has become a very popular financing channel for enterprises.However,an increasing number of enterprises choose IPO for listing,making the IPO channel crowded,and enterprises often have to wait for many years to get the listing opportunity.In addition,strict IPO review threshold will also be a large number of companies ready to go public at the door.In this context,backdoor listing came into being.Compared with IPO,backdoor listing has a shorter time and lower threshold.At the same time,backdoor listing companies can achieve their own substantial listing purpose by injecting high-quality assets into the shell companies.Shell companies can also keep the hard-won listing quota and improve their business conditions.However,this seemingly mutually beneficial listing method also hides huge risks.Although there are many advantages compared with IPO backdoor listing,backdoor listed companies frequently break out financial fraud cases of audit failure in recent years.This not only causes serious damage to the interests of the backdoor parties and accounting firms,but also causes huge losses to small and medium-sized investors.Therefore,it is very important for both parties,accounting firms and investors to help certified public accountants to identify and prevent the audit risks of backdoor listing.But now,most studies focus on IPO financial fraud risk more,fewer against backdoor listing a listing of audit risk,risk identification and response to the research,the backdoor listing of audit risk and audit focus on combining research are much rarer,in this paper,the hope can to the certified public accountants to the backdoor listing of audit risk identification and prevention play a guiding role.Based on the audit risk theory,this paper analyzes the audit risk of backdoor listing with cases.What risks are involved in backdoor listing are put forward and corresponding preventive measures are given for each risk point.Firstly,this paper analyzes the background of the quality control and audit procedure,the fraud means of JiuHao group,and the backdoor process of Reanda accounting firm,in order to find out the reasons for the audit failure of Reanda accounting firm.Then,taking the audit risk theory as the framework,this paper analyzes the audit risks in the case of Reanda accounting firm's backdoor listing of JiuHao group,and finds out the specific factors that lead to the audit risks of backdoor listing higher than ordinary IPO listing.In view of this risk point,several measures are given to prevent audit risks,and corresponding audit procedures are formulated to improve audit quality and safeguard the interests of investors.This paper also combines the literature research with the actual case situation for comparative analysis,through the analysis of a large number of domestic and foreign related literature,the problems found in the case have a deeper study.Through the above research methods,this paper concludes the specific audit risks and countermeasures of backdoor listing,hoping to play a guiding role in the work of certified public accountants.