Application Research Of Risk-Oriented Financial Due Diligence

In practical work,IPO due diligence can be roughly divided into financial due diligence,legal due diligence and business due diligence.Compared with laws and businesses,financial due diligence is more professional and complex.It can conduct in-depth analysis on the historical financial data,production and operation status,future development strategy and other information of the proposed issuer,and fully disclose the real financial information and potential financial risks of the proposed issuer to the CSRC and investors.However,problems such as insufficient financial risk disclosure often become the main reason for the IPO failure of the proposed issuer,that is the existing financial due diligence partially loses the ability to provide true information to the external market.Therefore,how to carry out financial due diligence scientifically and effectively has become an urgent problem to be solved.Firstly,on the basis of related literature of IPO financial due diligence,combining with related theories,this paper finds the risk-oriented on financial due diligence has a strong applicability,and risk-oriented to pass signals transmission and identify ways to improve the efficiency of financial due diligence,enhancing the effect of ease the information asymmetry.Secondly,this paper takes the risk-oriented IPO financial due diligence conducted by T Firm on Q company as the research object.It analyzes the current situation and problems of the financial due diligence,and deeply analyzes the causes of the problems,and proposes that the application of risk orientation is an effective method to solve problems.On the basis of general theoretical analysis combined with case experience,build up the risk-oriented financial due diligence analysis framework.Framework uses risk-oriented principle,starting from the general risk and the general goal of due diligence,to identify all potential risks within the scope of investigation,analysis of causes,evaluate risk probability and risk the consequences,The key risk points were identified,and then targeted to the implementation of the due diligence procedures,according to the results of the survey to communicate with the issuer,the follow-up tracking to the issuer rectification work,the implementation of the proposed issuer corrective effect.Finally,this paper reconstructs the financial due diligence process of T firm according to the risk-oriented framework,elaborates the specific measures of applying risk-oriented financial due diligence,and attempts to highlight the contribution of risk-oriented financial due diligence from the perspective of practice.This paper takes the risk of financial due diligence as the research entry point,combines the risk orientation with IPO financial due diligence for the first time,and constructs a risk-oriented financial due diligence framework with "identification,analysis and rectification" as the main context from a theoretical perspective.Under the guidance of the framework,the firm’s due diligence work is closely related to the major risks of the proposed issuer,enabling it to invest more workers and time in high-risk areas,implement more detailed measures,and obtain high-quality financial information.Moreover,the framework urges the firm to supervise the effect of the proposed issuer’s risk rectification,so as to improve the probability of the proposed issuer’s successful listing while reducing the risk.This new risk-oriented framework can be better applied to financial due diligence,realize significant improvement of efficiency and effect,so as to better strengthen the risk disclosure function of investigation and alleviate information the information asymmetry.