Research On The Identification And Response Of IPO Audit Risks Of Software Companies

In recent years,China’s capital market has become increasingly mature.On 1 February 2023,the CSRC officially announced to the public to solicit opinions on the Administrative Measures for the Classification of Shares in the First Open Issuance and other major institutional provisions,in order to promote the full implementation of the IPO filing system.After the pilot registration system reform of the Science and Technology Innovation Board,the Beijing Stock Exchange and the Chi Next Board of the stock market,the capital market has finally ushered in the reform of the registration system of the main board market.However,in order to successfully obtain the qualification for financing and listing,some small and medium-sized enterprises may use a series of fraudulent means in the process of preparing IPO application materials,such as inflating income and reducing costs,to increase cash flow and profits to meet the listing conditions,which will lead to a significant increase in IPO audit risks.This paper takes the IPO audit of software companies as the perspective,based on the IPO audit process experienced by himself,and takes HF companies as an example,to conduct in-depth research on the identification and response of IPO audit risks of software companies,and finally achieve the results of preventing and reducing the audit risks of software IPOs.This paper first reads and sorts out the analysis of the influencing factors of IPO audit risks at home and abroad and the relevant research on audit risk response,introduces the relevant audit concepts and theoretical foundations involved in the analysis process,including information asymmetry theory,principal-agent theory,fraud triangle theory and risk-oriented audit theory,and defines these theories in this paper.By summarizing the audit objectives and audit strategies of software IPOs,based on risk-oriented audits,data analysis methods and special research methods were used to identify the material misstatement risks and inspection risks in the process of IPO audit of HF companies,and finally achieved the purpose of controlling audit risks.Finally,from the perspective of accounting firms and auditors,this article makes recommendations for dealing with material misstatement risks and checking risks during the IPO audit process of software companies.Through the audit analysis of HF’s 2021 financial data,this paper discusses the identification and response methods of IPO audit risks of software companies.The study found that common audit problems of software companies include: irrational revenue determination,heavy dependence on large projects,and sustained lack of profitability.In addition,the audit process is prone to problems such as inadequate implementation of audit procedures,inadequate response to internal control issues and insufficient capacity of auditors.Based on the discovery of these problems,this paper proposes countermeasures to provide a basis for the subsequent IPO audit of software companies.