Research On Fraud And Audit Supervision Mechanism In Dengyun IPO

In recent years,with the development of China's economy and social progress,the security market is also accelerating its development.From a positive perspective,it has played a role in promoting China's economy,but we should also pay attention to the existing problems,that is,the financial fraud of listed companies is still emerging in an endless way,the existence of this problem has a negative impact on the stability and healthy development of China's securities market.Under the background that China has just revised the Securities Law,the research on the fraud behavior of listed companies has a strong practical significance for promoting the development of China's securities market.Based on the relevant literature,this study selects the fraud risk factor theory for research and review.Based on this theory,the fraud motivation of Dengyun shares is analyzed to determine the causes,phenomena,means and results of fraud.Then,the modern riskoriented audit theory is used to analyze the failure of Xinyong Zhonghe Audit.Dengyun went public in 2014,but was investigated by the CSRC in 2015.In 2017,the CSRC announced the investigation results and punishment measures.There are false records and major omissions in Dengyun's IPO application documents and annual report after listing.Specifically include: part of the three guarantees claim fee,consulting service fee,conference fee is not recorded,bill discount fee is not recorded,affirm income in advance,did not disclose the related party relationship and transactions as stipulated.At a regular press conference,the CSRC issued an administrative punishment on the fraud case of Dengyun: ordered to correct,gave a warning,and imposed a maximum fine of 600,000 yuan.The directors and executives of Dengyun were fined300,000 yuan and banned from the market for five years.Other responsible persons,sponsors and other intermediaries were also fined.Through the analysis of various behaviors of Dengyun,this study finds that the causes of fraud include: the moral quality of the management is not enough to resist the temptation,the pressure of enterprise financing,the internal control mechanism is not perfect,the need of external government achievements,the negligence of intermediary agencies and inadequate supervision,etc.After analysis on the fraud motivation of cloud shares and the responsibility,this study aimed at listed companies,intermediaries,and IPO audit system and supervision agencies respectively,puts forward some suggestions and countermeasures.First of all,listed companies should improve the internal control environment,strengthen moral education;Secondly,intermediaries should maintain their independence and professional suspicion,and improve the external supervision system,which can moderately reduce the risk of fraud in enterprises.Finally,the regulatory authorities should raise the illegal costs and effectively ensure that the IPO system and audit system can play an important role in the development of enterprises.This study provides early warning for the financial fraud risk of listed companies represented by Dengyun shares,provides suggestions for preventing financial fraud,provides solutions for existing financial fraud,and provides methods and reference for intermediary agencies to check whether there is fraud in enterprises and government regulatory departments to deal with financial fraud.