Research On Audit Risk Control Of IPO

With the rapid development of China's capital market,the size of the business is rapidly expanding.IPO(Initial Public Offerings,called IPO)has become an important option that more and more enterprises choose to raise funds and expand the size of the company.However,with the rising heat of the IPO,more and more problems gradually exposed during the process of IPO.Many companies tend to whitewash financial statements,inflated assets or profits and other means for listing qualifications.However,the CPA has failed to find out the abnormal information in the finance of company and issued an inappropriate audit report because of their own reason or external causes,which will undoubtedly greatly increase the risk of the accounting firm undertaking the IPO project.The accounting firms take an important role in economic oversighting,and issuing an appropriate audit report is significant for maintaining the market economic order.That is the reason why people are more and more concerned about the audit firms' audit responsibilities and the risk they are facing during the process of IPO project.The Particularity of IPO audit has virtually increased the firm's IPO audit risk.Therefore,the account firms must conduct in-depth study on how to control or avoid audit risk effectively to improve audit quality and promote the health progress of accounting firms and steady development of society and economy.This paper is based on the audit risk model and the related theory,by combining the concept and particularity of IPO audit to find out the causes of IPO audit risk.Methods on controlling and avoiding IPO audit risk are put forward on the basis of Tianneng Technology IPO fraud case.