Research On IPO Audit Risk Of Medical Device Enterprises On Science And Technology Innovation Board

In order to further improve the multi-level capital market system of our country,to facilitate the subsequent promotion of the registration system pilot,and to further meet the financing needs of scientific and technological innovative enterprises,science and technology innovation board came into being,specialized in serving scientific and technological and innovative small and medium-sized enterprises.In March 2019,the Shanghai Stock Exchange officially opened the file system for accepting and reviewing applications for the issuance and listing of stocks on the Science and Technology Innovation Board.In April 2019,a total of 62 enterprises were accepted by the board.The first batch of 25 companies went public in June 2019,marking the official opening of the board.By February 2023,there were 507 listed enterprises on the Science and Technology Innovation Board.For general enterprises with the same shares and rights,the Science and Technology Innovation Board has five sets of listing standards,of which the fifth set of listing standards support the listing of enterprises in the research and development stage that have not yet formed a certain income.However,the fifth set of marketing standards was initially targeted at drug research and development companies,with limited support areas.In June 2022,the Shanghai Stock Exchange issued and implemented the "Shanghai Stock Exchange Science and Technology Innovation Board Issuance and Listing Review Rules No.7-Medical Device Enterprises Apply the Fifth Set of Listing Standards"(hereinafter referred to as the New Guidelines).From now on,the enterprises applicable to the fifth set of Listing standards on Science and Technology Innovation Board will also include medical device enterprises.This provides specific standard guidance for medical device enterprises to apply for listing through the fifth set of standards,which will attract more medical device enterprises to list on the Science and Technology Innovation Board.This paper focuses on medical device enterprises on the Science and Innovation Board.Firstly,it reviews the literature research related to audit risk,IPO audit,IPO audit on the Science and Innovation board and medical device audit,and then analyzes the audit risk of medical device enterprises on the Science and Innovation board.It covers the background and general situation of the establishment of the Science and Technology Innovation Board,the basic situation of the medical device industry and the constitution of the IPO audit risk of the medical device enterprises on the Science and Technology Innovation Board.It defines the IPO audit risk of the medical device enterprises on the Science and Technology Innovation Board from the two perspectives of the financial statement level and the identification level,and then combines the IPO case of the medical device enterprises on the Science and Technology Innovation Board-Weidian Shengli.Research on the audit risks of IPO of medical device enterprises on the science and Technology Innovation board,including the risk of material misstatement at the financial statement level and the risk of revenue recognition,the risk of R&D expense recognition,the risk of capitalization of development expenditure,the risk of inventory recognition and the risk of impairment reserve.To provide accounting firms and certified public accountants with relevant suggestions on the follow-up IPO audit of medical device enterprises from the aspects of internal and external environment,internal control,sustainable operation ability,etc.,and put forward audit measures for certified public accountants to cope with income and other aspects,hoping to improve audit efficiency and audit quality,and promote the healthy and stable development of the Science and Technology innovation board.At present,the IPO audit research on the Science and Innovation Board has not fully covered all fields,among which,medical devices are the largest subsector in the biological manufacturing board.Therefore,this paper selects the first medical device enterprise listed on the Science and Innovation Board using the fifth set of listing standards-Weidian Shengli.as a specific case for analysis.It is hoped to provide suggestions for CPAs to cope with the IPO audit risks of medical device enterprises on the Science and Technology Innovation Board,and at the same time,it is hoped to provide standard guidance to some extent for other medical device enterprises that are not profitable and have not received a certain amount of income to seek listing on the Science and Technology Innovation Board.