IPO Audit Risk And Prevention

Under the background of the policy of transition from the approval system to the registration system in China's new share issuance system,and under the new economic and trade situation affected by China's “One Belt,One Road” strategic arrangement,the accounting firm's IPO audit business faces more arduous challenges.So far,China has experienced nine IPO periods,of which 15 months have been suspended since October 2012 and suspended for more than four months in July 2015.The China Securities Regulatory Commission has started a major inspection of the financial situation of IPO companies.In order to discover fraudulent practices and rectify the unreasonable parts of domestic IPO projects.After several major inspections,IPO fraud cases are still found every year,and the corresponding accounting firms and certified public accountants are punished by the Securities and Futures Commission.The author analyzes the relevant research literatures of predecessors.Most of the researches are only in the stage of pure theoretical research or based on the statistical summary of the CSRC.The problems are broad,lack of research depth and pertinence,and relatively few studies on specific cases.It is urgent to combine theory with practice,analyze and study China's IPO audit risk through representative cases,and more specifically interpret the theory,and find countermeasures and suggestions for dealing with forward-looking and representative audit risk.Therefore,based on a certain theoretical basis,this paper analyzes the theory related to IPO audit risk,including the characteristics and causes of IPO audit risk,from the perspective of audit subject,audit object and audit environment,and then summarizes the current status of IPO audit in China.Provide theoretical support for case analysis content.Finally,based on the above theory,the author takes the typical enterprise Zhenlong special product with IPO audit failure as the research object,systematically analyzes the main problems exposed by Ruihua Certified Public Accountants in the audit work,and further analyzes the causes of the IPO audit risk of Zhenlong specialty products.Finally,a representative audit risk response measure for IPO audit is proposed.The main contributions of this paper are as follows: Firstly,the audit failure cases of the CSRC's administrative penalties from 2010 to 2018 were collected and compiled,and the audit feedbacks from 60 cases of 60 IPO cases were summarized.Secondly,combined with typical audit failure cases,the combination of theory and practice is realized.The causes of IPO audit risk are analyzed.The countermeasures against IPO audit risk are put forward,which strengthens the theoretical and practical significance of this paper.