Research On IPO Audit Risk Of New Generation Information Technology Enterprises On Sci-Tech Innovation Board

Since its establishment,the Sci-Tech Innovation Board has always focused on supporting the development of strategic emerging industries such as new generation information technology,high-end technology equipment,new materials,new energy,energy conservation and environmental protection in China.As of the end of 2022,the number of enterprises listed on the Sci-Tech Innovation Board has exceeded 500,with the highest proportion of new generation information technology enterprises reaching39.0%,making it a well-deserved leader in the Sci-Tech Innovation Board.However,the proportion of new generation information technology enterprises in the Sci-Tech Innovation Board is also the highest.There are still many problems in the IPO review process of the Sci-Tech Innovation Board,especially in accounting,sustainable operation ability,technological progressiveness,internal control and compliance,and massive information data.In addition,China’s regulatory authorities are further improving the capital market system,compacting accounting services and other intermediaries as the gatekeepers of the capital market.Therefore,the audit of the IPO of the new generation of information technology enterprises on the Sci-Tech Innovation Board by accounting firms faces higher Audit risk.Based on this,the research question of this article is: combined with case studies and industry characteristics,analyze the major misstatement risks and inspection risks of the new generation of information technology enterprises when IPO on the Sci-Tech Innovation Board? What measures should CPA take to effectively deal with these Audit risk? The research idea of this paper is as follows: First,we sort out the relevant research literature of many scholars at home and abroad on IPO Audit risk and the audit of the new generation of information technology enterprises on the Sci-Tech Innovation Board;Then it analyzes the characteristics and audit standards of the IPO audit of the Sci-Tech Innovation Board,summarizes the characteristics of the new generation of information technology enterprises and the Audit risk of the industry in the Sci-Tech Innovation Board,and provides guidance for the next case study.Then,based on the modern risk audit model,this paper analyzes the Audit risk existing in the IPO process of J company’s Sci-Tech Innovation Board from three aspects,and proposes countermeasures for Audit risk.Through research,this paper concludes that the Audit risk of the new generation of information technology enterprises on the Sci-Tech Innovation Board in the process of listing is different from other industries,and there are their own unique major misstatement risks in the industry and policy background,research and development expenses,income costs,business model,sustainable operation,technology progressiveness and other aspects;In addition,due to the fact that the production and operation management of the audited entity rely entirely on information technology,there is a massive amount of complex information data,and auditors often lack relevant audit experience.China’s domestic institutions also lack standardized procedures for data security auditing,exacerbating the inspection risks.Accounting firms,as intermediaries,play an important role in controlling the quality of an enterprise’s IPO process.Therefore,in order to deal with the Audit risk of the IPO of the new generation of information technology enterprises on the Sci-Tech Innovation Board,this paper puts forward suggestions from three aspects: the risk of material misstatement at the financial statement level,the risk of material misstatement at the recognition level,and the risk of inspection.Through this study,it is hoped that while enriching the relevant literature,it can provide reference for the identification and response of Audit risk of IPO of the new generation of information technology enterprises on the Sci-Tech Innovation Board,help auditors better assume the responsibility of checking the capital market,and optimize the quality of enterprises in the capital market.