Research On IPO Audit Risk

With the development of the capital market in recent years,IPO has become the main means of financing expansion for many companies.But with the IPO booms,there have been many problems.The large number of penalties for IPO fraud and fraud not only shows that the IPO market has become more stringent in the requirements of listed companies,but also has sounded the alarm for intermediary agencies that provide services.With the passage of the New Securities Law in 2019,the securities market is about to usher in new changes.The failure of an IPO company's audit will not only have a negative impact on the company itself,but also the accounting firms it serves.In serious cases,the audit business and the number of audit clients will greatly decline,and it will eventually be difficult to continue operating.Therefore,for accounting firms,how to deal with the audit risks in the IPO audit and further improve the quality of the IPO audit is an extremely important issue at present.This paper uses a combination of literature research and case analysis to study the IPO audit risk.By reading the literature on audit risk and IPO audit,analyze the important concepts related to audit risk.Combining principal-agent theory,information asymmetry theory,etc.,the data of IPO review,IPO punishment,and IPO audit income of the firm are combed in recent years,and then the common IPO audit risk points are analyzed and summarized from a theoretical level.Based on this,a research and analysis of possible audit risk points in the Longbao ginseng audit case was pointed out,and possible problems in the IPO audit of the accounting firm were pointed out.Finally,the case was considered and the prevention measures were put forward.Suggestions on measures to control IPO audit risks.Through the analysis of Longbao Ginseng audit case,it is not difficult to find that the common problems of IPO audit risks may occur in different cases.The oommon risk points are that the certified public accountants need to be given sufficient professional caution and attention,and according to the actual situation Adopt appropriate audit procedures for further review.For special risks in special industries,special prevention and control measures are also needed.On the basis of improving the IPO audit quality control system,it is possible to reduce the IPO audit risks of special enterprises by establishing special industry audit project teams.