Research On Causes And Cntrol Of IPO Audit Risk

With the rapid development of China’s securities market, more and more companies want a slice of this big cake from the stock market, and prepare for the IPO. But it also triggered a series of problems, on the one hand, those companies who didn’t reach the IPO standards, will be packaged by malicious, deceptive IPO, insider trading, false information disclosure and other ways to dress up their performance,then acquire listing qualifications, financial fraud not only can not formally reflect the performance of companies, and once the IPO is successful,it will harm the interests of the majority of shareholders, hindering the healthy development of the securities market. As frequent listed financial fraud in recent years, plus concealment of fraud means, so that the CPA has become a high-risk occupation. On the other hand, in the IPO audit, if the CPAs lack of due care and professional skepticism, ignore important audit procedures, will produce audit risk,then cause audit failures.The result will make the public query the authenticity of the presented audited financial information, so that investors lose confidence in the market, a severe blow to the enthusiasm of investors,and as the CPAs,not only have to face the penalties and sanctions of the CSRC, but its image will suffer great damage, so that the public gradually lose confidence in CPA, thereby constraining the healthy development of CPAAudit risk is not only one of the audit focused on theoretical research field, but also the key to the actual operation. In the IPO audit, the CPA how to identify financial fraud, how to make good use of their professional knowledge and control audit risk, is the working standard they must be considered,has important theoretical and practical significance. Therefore, strengthening the control of IPO audit risk is imperative. This paper mainly divided into three parts:The first part including the introduction and theoretical analysis, this part introduces the background, meaning and purpose,analyzes the current status of IPO audit, and the IPO audit risk causes and control theoretical research status at home and abroad; second part as 2013 IPO audit failure cases-Guangdong xindadi for example, analyzes the major financial fraud and CPA’s problems in the audit; Part III summarizes IPO audit risk types in common, and analyzes the IPO audit risk causes from the audit subject, the audit object, external environment, then mainly stand at CPA’s perspective, based on modern risk-oriented audit model, put forward concrete operational IPO audit risk control measures from how to reasonably use the audit risk assessment procedures, how to control the related party transactions risks and effectively control the circularization to control the risk.Finally,give some external regulatory proposals.