Research On Audit Risks And Countermeasures Of The IPO Of The Science And Technology Innovation Board

In order to promote the consistent high-quality development of China’s science and technology innovation and technology,on 5 November 2018,General Secretary Xi Jinping announced the introduction of the registration system and its implementation,starting with the new Science and Technology Venture Board on the Shanghai Stock Exchange as a pilot,changing the previous approval-based IPO review system.This major initiative not only provided a good platform for listing and financing of Chinese high-tech companies in their early stages of development,but also led most of the high-tech companies in China to apply for registration and listing.As more and more science and technology start-ups choose to go public,the audit services provided by accounting firms have grown tremendously.However,due to the complex operation and development of most of the science and technology start-ups,it has become a new issue that auditors must face as to how they can effectively control the risk of IPO audit of science and technology start-ups in the registration system and ensure the stability of audit quality,while providing a true and objective audit report to the majority of investors to help them choose their investment direction in a scientific and reasonable manner.Therefore,a study on the IPO audit risk of the Sci-Tech innovation board will be of great significance to the future healthy development of China’s Sci-Tech innovation board.This paper collects and organises the literature on audit risk and IPO audit risk at home and abroad.Based on principal-agent theory,modern risk-oriented audit theory and information asymmetry theory,the paper adopts a literature research method and a case study approach to explore new ideas for the control of IPO audit risk on the Sci-Tech innovation board.At the same time,the paper delves into the characteristics of IPO audit risk on the SciTech innovation board and the various management rules and systems of the Sci-Tech innovation board in China,and summarises the IPO audit risk faced by Sci-Tech innovation board companies from a theoretical perspective.The article selects a practical case of the audit of Saih Smart by Rongcheng CPA Firm,analyses the audit risks encountered by Rongcheng CPA Firm in the audit of IPO enterprises on the Sci-Tech innovation board,and proposes measures to address the material misstatement risk and inspection risk from the perspective of the CPA Firm:in dealing with the material misstatement risk,auditors should have a comprehensive understanding of the industry situation and external environment of the SciTech innovation board enterprises In addressing the risk of material misstatement,auditors should have a comprehensive understanding of the industry and the external environment of Sci-Tech innovation board companies,conduct adequate investigation into the organisational structure and internal control of the companies,and strengthen the audit of the going concern capability of Sci-Tech innovation board companies;in addressing the risk of inspection,auditors should improve their professional ethics and competence,enhance the training of comprehensive audit talents,and safeguard the quality control system of accounting firms.Based on the above research,we hope to provide some useful references for accounting firms to carry out IPO audits on the Sci-Tech innovation board,and to provide some useful references for effective control of IPO audit risks on the Sci-Tech innovation board,so as to promote the long-term and stable development of the Sci-Tech innovation board market in China.