The Reasons And Countermeasures Of IPO Audit Failure

In recent years,the frequent occurrence of IPO audit failures has had a negative impact on the orderly operation of China's securities market and the good development of the CPA industry,and it has also caused huge losses to investors.Analyze and study the reasons for IPO audit failure,and give corresponding countermeasures to help auditors understand the fraud methods of listed companies,identify audit risks and prevent IPO audit failures.Based on the theory and literature of IPO audit failure,this paper takes risk-oriented audit theory and risk factor theory as the theoretical basis,and takes the IPO audit of ShineWing and Dengyun shares as a specific case,according to the relevant punishment announcement of the CSRC and The financial data publicly disclosed by Yun shares,while clarifying the ins and outs of the case,explored the fraudulent means of Dengyun shares,and on this basis,analyzed the reasons for the failure of IPO audit.Firstly,using risk factor theory to analyze the IPO fraud motives of Dengyun shares from the five dimensions of the theory,then analyze the reasons for audit failure from the perspectives of CPA and external environment,among which the CPA market competition is not standardized.Industry regulation and imperfections in the governmentregulatory system are the main factors leading to the failure of IPO audits.Based on the cause analysis,this paper proposes countermeasures to prevent IPO audit failure.When proposing countermeasures,In this paper,the CPA and the accounting firm are proposed as the two responsible entities.In the case of CPAs,strict implementation of modern risk-oriented auditing is the key to the countermeasures;accounting firms need to conduct business supervision while improving the IPO audit quality control system;and regulators must change the regulatory approach and increase IPO penalties.At the same time,industry management agencies should also strengthen industry management and quality control.Considering that the financial fraud of the audited entity is the source of audit failure,the construction of the good internal environment of the audited entity and the improvement of the moral level are also essential.Through a multi-pronged approach,audit failures are avoided,thus promoting the good development of China's capital market.