Research On A Accounting Firm's Audit Risk And Its Prevention Based On X Company IPO

As one of the important channels for enterprises to raise capital,capital market is a tool to realize the social resources effective configuration,at the same time it plays an important role to perfect corporate governance structure.In recent years,With the increase in the number of IPO companies fraud case exposed,intermediary institutions bear the unavoidable responsibility in the process of IPO.The healthy development of capital market is dependent on the independent audit,As the"protector",it plays an important driving effect on stability of the securities market.The regulators and the public cause doubt on audit risk control in the process of IPO project and the improvement of audit quality because of IPO audit failure.Therefore,the research on IPO project in the process of audit risk control is meaningful to improve the audit quality in our capital market steady progress.This article starts with auditing risk and control,X company IPO,which was undertaken by A CPA firm,is the subject of research,using the method of literature and case analysis,guided by the principal-agent theory and the modern risk-oriented audit theory,the author analyzes the audit risk of the project from the level of the audited unit,the accounting firm level and the special business level of the IPO.In particular,the audit risk in the X company's IPO project is A major misrepresentation risk in the audit project planning phase,audit risk in the implementation phase of the audit project,special risk of IPO project.The author deeply analyzes the risk of major misreporting and the risk of fraud in X company earnings and identification,the risk of the auditor's professional competence,audit procedure,and the quality control of IPO audit,the risk of restructuring,recessive debt,profit forecasting,and continued business capacity of X company IPO,focusing on high-risk areas of the project as a key analysis of the project,putting forward the prevention measures.The author suggests that the prevention of audit risk runs through the entire process of the project,by designing and implementing the overall response measures and further auditing procedures to address the risk of major misreporting,by improving the personnel allocation of the project team,improving the professional care attitude of the auditors and improving the quality control system to address the risk of IPO audit,by designing and performing further audit procedures to address the special risk of IPO audit.Finally,the audit risk is reduced to acceptable low levels,thereby ensuring the audit effectiveness of the audit project.Although the article is writing an IPO for X company,advising the prevention of audit risk on A firm,it is instructive to choose the representative case and the audit of public accounting firm's IPO.