The Analysis Of The Problems Of IPO Audit Quality

Since 1990 of the establishment of the Shanghai stock exchange and the Shenzhen stock exchange, continuous development and improvement of Chinese capital market provides multi-level financing platform for the enterprise. IPO as a means of financing in the capital market, is popular with more and more enterprises, the number of companies each year to carry out IPO in our country is large currently. However, the situation of IPO audit quality is not optimistic in our country, enterprise financial report can't help checking or financial performance often turns worse. How to ensure the IPO audit quality, protect the legitimate rights and interests of small and medium-sized investors, safeguard the healthy and orderly development of Chinese capital market is the problems that must be resolved in front of us.This paper mainly adopts literature analysis, case study method and the combination of qualitative and quantitative methods. According to the accounting oversight risk warning no. 4- IPO audit company of 10 types of IPO audit risk, combined with IPO classic cases of Lv Dadi event, Xin Dadi event as well as Wanfu Shengke event, this paper sums up the main problems of three kinds of IPO audit quality, namely IPO audit project quality control of accounting firms was lax, the auditing procedures lacked or became a mere formality and the auditor did not confirm the disclosure of financial information and non-financial information. Then it analyzes the causes of IPO audit quality problems from the perspective of the audit object, accounting firms, government and the resulting consequences: skepticism of the auditor independence, decreasing of the government credibility, business setbacks, damaging of medium and small investors' legitimate rights.Lastly from the current main problems of IPO audit quality in our country and the causes and consequences,it puts forward some suggestions and countermeasures that increase the IPO audit quality at the aspect of the enterprise, accounting firms, government, for example: the enterprises should improve the system of internal control, play the role of corporate governance mechanism and disclose related important information actively; accounting firms should build up the idea of the good faith management, carry out the strict coach risk assessment, strengthen the training of auditors, implement peer review system objectively and fairly; the government should perfect the laws and regulations, punish corrupt companies heavily, increase crackdown on fraud intermediary agencies.