A Study On IPO Auditing Defeat Of Liaoning Zhenlong Company

With the rapid development of China's capital market,the problems exposed have also increased.There are problems in the organizational structure of the enterprise,the financial system is not perfect,and the third-party organizations neglect the effective operation of the internal control of the enterprise in pursuit of efficiency,the accounting firm does not pay attention to quality control,the professional competence of the CPA is insufficient,and external supervision has loopholes.These problems have led to IPO audits have failed frequently.Moreover,due to its own industry characteristics,such as the vulnerability of natural factors,biological assets,and large cash transactions,agricultural enterprises have many audit risk points and have difficulties in auditing.These are all for project auditing.CPA's professional competence and experience raises higher requirements.And,the state has given a number of preferential policies to the agricultural industry,which has reduced the fraud costs of agricultural enterprises' IPOs and prompted the frequent occurrence of financial fraud in agricultural enterprises.Therefore,it is necessary to explore the reasons why CPAs have repeatedly failed in IPO audits of agricultural enterprises and provide corresponding countermeasures.At the same time,establish an institutional guarantee mechanism for IPO audit quality.This will improve the quality of IPO audits in China and give full play to accounting firms.It is of far-reaching significance to reduce the investment risk,protect the personal interests of investors and purify the economic environment of the securities market,and promote the deepening reform and standardization of China's market economy in the process of enterprise IPO.This paper firstly summarizes the relevant concepts of IPO audit in China,and introduces the related concepts of IPO audit and IPO audit failure,and analyzes the current situation of IPO audit failure in China.Next,the Zhenlong Company IPO audit failure case was selected as the case study object.The theory and case were combined to study the reasons for the CPA audit failure of the Certified Public Accountant.This paper analyzes the reasons for the failure of the IPO audit of Zhenlong specialty products from Liaoning Zhenlong specialty and Ruihua Certified Public Accountants.It analyzes the motives and specific violations of Liaoning Zhenlong special products in the IPO process.From the perspective of auditing object,the reasons for the failure of the IPO audit were analyzed.Then,the reasons for the failure of the IPO audit were analyzed from the perspective of the firm and the CPA.This is the reason for the failure of the IPO audit of the Zhenlong specialty from the perspective of the auditing entity.Finally,combined with the specific measures to prevent the failure of the IPO audit of agricultural enterprises are proposed from the auditing level,the auditing object level and the external supervision level.Improve the quality of IPO audits,optimize the IPO audit environment,and circumvent the failure of IPO audits.