Research On Auditing Failure Of The Growth Enterprise Market IPO

CPA has always occupied an important position in the capital market supervision system.In recent years,a large number of financial fraud cases on the CPA industry has caused a very bad impact.As the second stock market,the growth enterprise market(GEM)provides the opportunity for the small and medium-sized enterprises that with development potential and lack of financing channels.Compared with the motherboard and small and medium-sized board,the GEM market pay more attention on the company's growth,development and innovation.Its listing conditions are not high,so there is a high risk,which makes auditors and audit institutions to take greater risks in the auditing practice.With China's IPO audit and issue continues to accelerate,the number of companies listed on GEM is increasing.More companies began to declare the GEM IPO,which is higher on the GEM IPO audit requirements.In recent years,the IPO examination is becoming more severe.In June 24,2016,the Commission formally announced the deployment of the initial public offering(IPO)fraud and illegal disclosure of information law enforcement action,the implementation of a comprehensive supervision and control work,in order to purify the market environment IPO.In this context,the relevant auditors and audit institutions are subject to certain penalties,the audit industry to avoid the adverse effects of audit failure.On the basis of previous studies,this paper starts from the related concepts and basic theories of GEM IPO audit failure,and expounds the GEM IPO,audit characteristics of GEM IPO and audit failure.Then combined with the China Securities Regulatory Commission on CPA and accounting firms,this paper summarizes the current situation of audit failure in China,puts forward the problems of the stage and explore the deep reasons,and then puts forward some countermeasures from the two aspects of the audit practice environment and the certified public accountant,including regulating the audit practice environment,emphasizing the implementation of professional standards,improving the professional ethics of CPA;Finally,this paper makes Xintai as the case of the IPO audit failure of the GEM,and makes a detailed case analysis of the problems encountered in the process of the GEM audit.