Research On The Audit Quality Of Initial Public Offerings

With the rapid development of the market economy and the expansion of the development scale of more and more enterprises,they can no longer meet their internal needs by self-financing and have to enter the capital market.Stock listing is the most effective financing method in the capital market,and the audit of initial public offering stocks is a necessary procedure for stock listing.Therefore,how to make good use of various audit procedures,deal with the relationship between income and cost,reduce audit risks to a tolerable level while improving audit efficiency,and doing a good job as the "gatekeeper" of the capital market is the focus of certified public accountants.Taking Dahua Accounting Firm’s IPO audit of Company F Co.,Ltd.as an example,this paper carries out research on the audit quality of initial public offering stocks,which is of great theoretical and practical significance.Guided by principal-agent theory,cost and benefit theory and audit quality control theory,this paper analyzes the risk-oriented IPO audit quality.It believes that the participation of multiple IPO institutions and the increased risk of collusion put forward higher requirements for the professional ability,independence and professional ethics of auditors.At the same time,the working ability of auditors,the timing of IPO audit projects,and the formulation and implementation of quality control systems all have an important impact on the quality of audit work and the quality of work results.Through the analysis of Dahua’s audit process of Company F’s IPO and the three-year and first-phase financial audit results,it was found that it had audit quality problems such as insufficient application of analytical procedures,excessive reliance on substantive testing,and failure to prompt the company’s overall risk.The reason is that the industry IPO audit guidelines that can be referred to are not perfect,the comprehensive competencies of auditors are insufficient,the number and structural arrangements of project team members are unreasonable,and there is still no common information system audit software.Dahua Accounting Firm’s experience in IPO audit cases of Company F has important enlightenment for improving the quality of IPO auditing.In the IPO audit,auditors should fully consider the factors affecting the division of the IPO audit stage,reasonably divide the audit process of each IPO project;improve the industry’s IPO audit business guidelines in a timely manner;strengthen the introduction and training of compound audit talents;reasonably allocate human resources for IPO audit projects;and increase Inputs in the development of information system audit software.