A Case Study On The Failure Of DY Stock IPO Audit

Since the founding of new China and the reform and opening up,China's economy has been developing continuously.Along with the continuous expansion of the capital market and the new measures of IPO expansion proposed by the central government in 2013,the securities industry has become increasingly hot and flourishing.In order to have better and larger development space and attract investors to invest in them,some enterprises choose to go public.And some enterprises in order to go public to take the abnormal commercial means,there are serious financial fraud and fraud.This has a bad impact on the healthy and orderly development of the capital market and also harms the interests of investors.In recent years,IPO audit failure cases have occurred from time to time,such as the well-known "green land","xintai electric","wanfu shengke","tianfeng energy saving" and "shengjing mountain river".These events exposed the IPO audit chaos in China's capital market,which not only caused losses to investors,but also made the public lose confidence in accounting firms.In order to avoid the recurrence of similar events,and to re-establish the public credibility of accounting firms,these problems in IPO audit are worth our thinking,analysis and solution.In combination,on the basis of predecessors' research,this article adopts the method of theory combining with case selection "cloud shares" IPO audit failure case,introduces the research background and significance,and then to the basic theory of auditing as foothold,introduces the background,the cases to analyze the reasons for the failure of IPO audit,and get the enlightenment and Suggestions are put forward.From the perspective of practical significance,the case study of DY IPO audit failure can help prevent the possibility of audit failure and optimize the operation efficiency of China's capital market.At present,there are not many accounting firms with rich experience in IPO audit in China.Through this DY IPO audit failure case,to the accounting firm industry wake-up call.Due to the complexity and difficulty of IPO audit business,accounting firms should improve their risk awareness,professional level,professional quality and professional ethics.Appropriate audit procedures should be established to ensure the quality of the audit,so as to avoid repeating the same mistakes and prevent the recurrence of audit failures.