Research On IPO Audit Risk And Countermeasures Of STAR MARKET

In 2019,our country set up the STAR MARKET,which mainly supports enterprises with strong ability of science and technology innovation and possessing core technology.The standards for listing have been relaxed,and the lower standards for listing have increased the opportunities for sci-tech and innovation companies to go public.The overall quality of STAR MARKET companies financial statements is not as good as that of the main board.At the same time,after the trial registration system,the regulatory authorities pay more attention to the information disclosure of enterprises,and the role of the Accounting networks and associations as the "gatekeeper" of the capital market assumes more responsibilities.The STAR MARKET has certain particularity,the audit risk which presents in the IPO process is also different,has brought the bigger challenge to the Accounting networks and associations.This paper is based on modern risk-oriented audit theory,Information asymmetry theory,resource allocation theory and other related theories,this paper studies the possible audit risks in the IPO audit of STAR MARKET and the corresponding Accounting networks and associations measures.Through the comparison between the STAR MARKET and other sectors in China,this paper focuses on the characteristics of the risks in the IPO audit of the STAR MARKET,and analyzes the main sources of the audit risks from the aspects of the listing audit system and the characteristics of the science and innovation Company,etc.this paper studies the characteristics of IPO audit risk of STAR MARKET,and analyzes the challenges that Accounting networks and associations will meet in the IPO audit of STAR MARKET from two aspects: the risk of material misstatement and the risk of examination.Taking Baker Tilly auditing Xingjia Biology as an example,this paper analyzes the auditing risks that Baker Tilly china encounters when auditing the IPO Enterprises of STAR MARKET,and how the audit emphasis changes in STAR MARKET,we also find that there are some problems such as lack of professional suspicion,inadequate background investigation and imperfect quality control of the firm.Through the above research,for the Accounting networks and associations on the IPO audit of STAR MARKET to make reference to the recommendations.It is suggested that the Accounting networks and associations should strengthen the understanding of the company’s basic situation and the industry situation,and focus on the company’s sustainable management ability,internal control,R & D expenses,etc.to deal with the risk of material misstatement;Accounting Networks and associations recommends strengthening the professional competence of auditors,using intelligent technology to assist audits,and strengthening internal quality control reviews to address inspection risks.Through this study,I hope to contribute to the IPO audit risk research of the STAR MARKET.