Research On IPO Audit Risk And Preventive Measures

In recent years,with the rapid development of China's economy and the capital market,more and more companies choose to raise funds and expand the scale through initial public offerings.Behind the enthusiasm of the enterprise IPO,there are some companies take other means to reach the standard,resulting frequent IPO financial fraud events.On the other hand,there is a rapid decline in the performance of some new shares after listing,which makes people doubt the authenticity of the financial performance of enterprises during the IPO reporting period.The emergence of these situations,to some extent,highlights the lack of audit work and the increase of audit risk in the process of IPO in China's enterprises,with the market paying more attention to IPO audit,it is a top priority for firms and CPA that how to control the risk of IPO audit.This paper will choose high frequency risk models,the Commission suggested that the emergence of audit risk and combined with the audit failure case of Tianfeng,through the analysis of the audit risk type which shows in the Tianfeng's auditing,and puts forward the countermeasures to solve these measures mainly involves the audit risk,risk assessment,risk of material misstatement for overall response the financial statements,level of assertion level further audit procedures and control measures for the inspection of risk.