Research On IPO Audit Risk Of Zhenlong Specialty By Ruihua Accounting Firm

In recent years,the capital market has developed rapidly,and more and more enterprises hope to raise funds through IPO.Successful listing can not only raise funds for development,but also help to improve corporate governance structure and expand production scale.At the same time,due to the strict audit of IPO in our country,if the companies want to go public successfully,they must meet the relevant regulations of the CSRC,and due to the imperfect supervision system of the capital market,many enterprises have successfully passed the audit through financial fraud in order to achieve the purpose of listing.So in recent years,more and more IPO enterprise financial fraud cases have been exposed,A large part of this is owned by agribusiness.Accounting firm is an independent audit institution in the process of enterprise listing.The fraud behavior of enterprises in the process of IPO greatly increases the audit risk of accounting firms.If the audit fails,not only the auditor will be punished,his accounting firm will also be implicated,and even people's trust in the industry will be reduced,which is not conducive to the development of the audit industry.Therefore,in-depth study of IPO audit risk is very necessary,through the research can help accounting firms to effectively respond to the corresponding audit risks,further improve the quality of IPO audit,but also conducive to the development of the audit industry.Due to the specificities of the agribusiness industry and business,these enterprises own a large number of inventories,the daily business is more complex,and the IPO audit lasts a long time,and the workload in the audit process is large.Therefore,the audit risks faced by auditors in the process of IPO audit of agricultural enterprises are greatly increased.In the course of the IPO audit,Ruihua Accounting firm did not find the financial fraud of Zhenlong specialty products,and finally issued an improper audit opinion,mainly because it failed to carry out targeted audit risk response to the IPO audit of agricultural enterprises.Therefore,this paper chooses Ruihua accounting firm to study the IPO audit of Zhenlong specialty as a typical case.This article starts with the IPO audit risk,first of all,in order to extend the academic foundation of this paper,learning from the results of scholars at home and abroad.Next it is based on the modern risk-oriented audit and information asymmetry theory,adopting case study method,reviews the audit case of Zhenlong specialty IPO by Ruihua accounting firm.This paper analyzes the identification and evaluation of financial statement level and identification level by Ruihua accounting firm,and points out the problems existing in the course of dealing with audit risk.Finally,this paper puts forward relevant suggestions for Ruihua Accounting Firm to optimize the risk response system of agricultural enterprises' IPO auditing from three aspects: improving the comprehensive quality of auditors,strictly designing and implementing audit procedures and strengthening the quality control of accounting firms.It hopes to help firms effectively control the risks that may exist in the audit process,so that the audit industry can be better developed.