Research On The Risk Of IPO Audit Of Small And Medium Board Listed Companies In China

The small and medium-sized board,namely the small and medium-sized enterprise board,was approved by the State Council of China in May 2004 and was established in the main board market of the Shenzhen Stock Exchange.The establishment of small and medium-sized board is an important measure to build a multi-level capital market,and it is also a transition of the second board market,providing an effective financing platform for the majority of small and medium-sized enterprises in China.With the rapid development of the securities market and small and medium-sized board,the number of small and medium-sized listed companies has also grown rapidly.By the end of 2018,922 companies have been listed on small and medium-sized board,with a total market capitalization of701.2 billion yuan.IPO,as the main way for small and medium-sized enterprises to go public,has brought about development opportunities,but it has also exposed a series of financial fraud problems and audit risks.In recent years,the fraudulent listings of companies such as Anzhong and Shenglaida have caused market investors to worry about the quality of small and medium-sized board enterprises,which has seriously disrupted the sound operation of China's capital market.How to deeply explore the commonality of small and medium-sized board IPOs and audit risk prevention measures is particularly important.This article takes small and medium-sized listed companies and typical cases-Dengyun shares as the research object.On the basis of extensive review of relevant literatures at home and abroad,it first sorts out the literature on audit risks and related impacts and preventive measures,and summarizes domestic and foreign research,then analyze the characteristics and causes of China's small and medium-sized board IPO audit risks;then select the representative of Dengyun shares in the high-stakes industry as a case study object,combined with financial fraud behavior of Dengyun shares in the IPO process,analysis audit risk that the accounting firm and the CPA have neglected in the IPO audit process of the small and medium-sized board,and explore the reasons for it,and propose relevant preventive measures and recommendations.The study found that the main audit risks are insufficient sustained profitability,lack of internal control effectiveness,inadequate information disclosure,CPA practice quality and practice attitude.It also proposes to carefully assess the external environmental risks of the audited entity and fully understand the internal environment of the audited entity.Develop specific IPO audit quality control systems and increase regulatory penalties and other related measures.The innovation of this paper is to study the small and medium-sized board as the research object from the perspective of audit risk,instead of studying the main board market and financial risk,and find out the commonality of IPO audit risk by small and medium-sized board through data statistics and status analysis.And combined with specific cases,provide a new way of thinking for the difficulties faced by the small and medium-sized board market and CPA.