Esearch On Financial Fraud Of Listed Companies With IPO Audit Failure

With the rapid development of China's economy,the needs of the market economy and enterprise development,more and more enterprises choose to go public,in order to ensure that listed companies can better use the funds of investors to operate and develop more effectively.At the same time,the successful operation of listed companies would also promote the development of the national economy and the local economy.From this perspective,IPO audit supervision is essential and necessary.Therefore,the IPO audit plays a crucial role in the IPO process of the listed company,which largely determines whether the corporation can succeed.In addition,the accounting firms and CPAs responsible for IPO auditing bear more significant responsibilities.As a special profitable service organization,the accounting firm not only needs to meet the needs of the audited clients to go public,but also accepts the government's supervision and public inspection to avoid audit defeat and litigation risks.The dual nature of accounting firms makes them lurking with various risks and uncertainties all the time.Under such circumstances,how to improve the IPO and further auditing strategies to reduce audit failure has become a focus of attention in theory and practice.Recently,some firms preparing to go public have experienced financial fraud in the IPO auditing process,and some have been found in the IPO auditing phase and terminated.However,there are still numerous corporations that have not been discovered and successfully passed the listing.This type of company exposed the previous financial deception within 1-3 years after its listing.This phenomenon pollutes the entire capital market and makes the regulatory environment difficult.Investors also question the integrity of the audit market.For investors,that will also hurt the confidence of potential investors.In order to shorten the appearance of accounting fabrication in public companies,we should further strengthen the attention from the IPO auditing stage of public firms and prevent the occurrence of fraudulent behavior from the source.Through in-depth and meticulous analysis of typical cases that have occurred in recent years,the reasons and specific operations of financial fraud are analyzed.At that moment,the reasons for the audit failure of auditors should be analyzed in depth.This paper is based on this research.This paper analyzes the IPO audit failure cases and the relevant cases of the administrative punishment decision issued by the CSRC through statistics on the IPO companies listed in China during the period from 2012 to 2018.Based on the analysis of 10 representative IPO audit failure cases,the paper further summarized the problems of audit strategy design and application in the IPO audit,such as improper evaluation of risk procedures,insufficient internal control testing and lack of correspondence procedures.Secondly,it analyzes the financial fraud behavior in the audit failure case,and finds that the profit,the income accounting process is unknown,and the information of the transactions between the related parties is insufficient,which is the main way and cause of financial fraud.Finally,through analyzing the typical case of Huaiji Dengyun Auto Parts,it puts forward countermeasures and suggestions to control financial fraud and reduce audit failure.