Research On The Prevention Of CPA's IPO Audit Failure

The rapid development of the economy,especially the widespread use of the system of separation of property rights for production and operation,has made the importance of third-party auditing business more and more concerned.By using the IPO listing channel,the company can raise huge amounts of funds in a short period of time,and successful listing will also bring certain advertising effects to the company,which is very beneficial for future development.Under this circumstance,more and more companies are aiming at the capital market and want to complete the further expansion of the company through listing.However,China's laws are stricter on IPO issuance.In the face of the huge temptation of listed financing,some enterprises that do not meet the requirements are tempted to confuse the financial statements provided to the CSRC,and the CPAs fail for various reasons.Strict implementation of the auditing standards led to the accounting firm's IPO audit process in the process of the IPO audit of the audited entity,which resulted in an audit report that did not match the actual situation of the audited entity.The frequent occurrence of such cases will not only cause investors to doubt the accounting information in the market,but also the confidence to continue investing.It will also doubt the professionalism and impartiality of the CPA profession.In the long run,the healthy development of the capital market.It is extremely unfavorable.In order to prevent this from happening,for the long-term development of the market,it is imperative to find out the root cause of the failure of the IPO audit and analyze the corresponding preventive measures.On the basis of the existing research,this paper starts from the definition and important role of IPO audit,and then elaborates the definition of IPO audit failure and the bad influence in the capital market,so that the research in this paper has certain practical significance.After that,the author analyzed in detail the reasons for the frequent occurrence of IPO audit failure cases in China,and put forward preventive suggestions in a targeted manner,covering the auditing industry,accounting firms and certified public accountants respectively,and innovatively proposed to establish self-inspection within the auditing industry.Self-examination of the rating mechanism to strengthen the self-discipline of CPAs,fundamentally prevent the emergence of IPO audit failures;Finally,take the IPO audit of the newly-developed Ruihua office in Liaoning as an example to analyze the CPAs.The audit process was not strictly implemented,which ultimately led to the audit failure and was investigated and dealt with by the CSRC.The conclusions and reflections of the case to the auditors were thus obtained,which have certain reference value for preventing such incidents in the future.