Risk Of IPO Audit And Its

Financial accounting problems of IPO enterprise is always the focus of the public. In the era of information explosion, financial fraud of IPO enterprise is frequently exposed. As the opening of China growth enterprise market(GEM), the distortion of GEM aroused public’s attention once again. IPO enterprises’financial fraud will not only mislead investors, which seriously undermine the usefulness of financial information for decision making, but also would undermine the credit foundation of market economy fundamentally,weaken and distort the securities capital market allocation of resources and capital raising function, endanger the normal operation of macroeconomic.The information of China Securities Regulatory Commission prevails that the IEC of main and SME board、the IEC of GEM board has not approved by IPO since July 26,2012,and July 31,2012 respectively. IPO enterprises have waited on line for more than 800 which is known as the "IPO lake". The Commission released an issuance [(2012]No.551] in December 28,2012, request sponsor agencies, accounting firms to conduct inspections of financial and submit the financial verification report before April 1,2013.This article summarizes the previous IPO failures and financial results of verification, analysis of financial problems in the process of IPO, combining theory with practice. As financial verification requires, it proposed the method of audit risk, and a novel method of finding out financial fraud of IPO enterprises, and how to improve audit quality by accounting firms internal control.