Study On IPO Audit Risk Of GEM Companies

With the development of China's capital market,the relevant national system and market system have provided many small and medium-sized enterprises with further development space and incentive "Temptation".The most direct and most attractive way is that IPO.Enterprises can not only raise a large amount of funds,but also improve their own image and gain more.Many investors have invested capital to promote the development of the local economy.Especially since the establishment of the GEM market since 2009,many SMEs have been given the opportunity to go on the market.It is because of the "tempting" benefits of listing that many enterprises have to succeed at all costs at all costs,but in recent years,China's capital market has been given to the city of IPO.The system of field construction is still not perfect,and the personality problems of small and medium-sized enterprises will appear frequently.The phenomenon of financial fraud of GEM listed companies is still happening.From the famous new land case to Boyuan investment,Hirisun,Xintai electric,the enterprise adopted the means for listing,which leads to the trial board company IPO trial.As the risk increases,it also increases the difficulty of the audit work,so it is of great significance to effectively control the audit risk of IPO and improve the quality of IPO audit work of the auditors to promote the healthy and orderly development of the GEM market in China.This paper first introduces the definition,characteristics and audit risk model of audit risk through literature research.By analyzing the current situation of the development of GEM market and combining the characteristics of IPO audit,this paper sums up the risk points of IPO audit in China's enterprise board company and analyzes the causes of these risks.In the case of "The first stock of the pioneering board," the case was analyzed,and the audit risk model was used to analyze its IPO audit risk.Finally,based on the analysis of this case,some suggestions were put forward to prevent the IPO audit risk of the company.The study believed that the risk of IPO audit in the venture company was to be avoided,from the accounting firm level.On the other hand,CPA should fully understand the audited units and their industry environment,strengthen the audit of the key content,such as the internal control audit,the related party transaction audit,the other firms should strengthen the internal IPO audit quality control,strengthen the professional ethics construction of CPA and so on.Fromthe external regulatory environment level,the CSRC should increase penalties for IPO fraud,improve IPO Sponsorship system and Stock issuance registration system,strictly implement delisting system,and so on,which can effectively prevent and reduce IPO audit risk.