HD Accounting Firm IPO Audit Risk And Risk Prevention

With the steady growth of China's economy,the capital market has also ushered in new opportunities for development.The accounting firm plays a role of "gatekeeper" in the capital market,and it is also the basis for investors to invest in the capital market.At present,the business model of enterprises is becoming more and more complicated,and it is more and more difficult for accounting firms to conduct audits,and the corresponding risks are also increasing.Once an accounting firm issues an inappropriate audit opinion,it will not only cause its reputation Adverse effects also require a certain liability for compensation.This article focuses on the auditing risks of accounting firms and combs the current research status at home and abroad.Then,based on this,it analyzes auditing risks and related theories,thus laying a certain theoretical foundation for the research of this article.This article takes Enterprise Z as an example to conduct a detailed analysis of the audit risks faced by HD accounting firms during IPO audits.The analysis mainly focuses on the causes of these audit risks.For these reasons,this article puts forward corresponding countermeasures.Recommendations to help HD accounting firms better control the audit risks undertaken in IPO audits.Through research,this paper found that HD accountants lacked a certain degree of risk awareness when auditing the audited units of the proposed IPO,and did not implement due audit procedures for the risks of major misstatement of financial statements and the risk of financial fraud.In arranging the project team personnel,sufficient attention was not paid to the professional competence of the relevant personnel.The competitive environment faced by accounting firms is becoming increasingly fierce.In order to undertake more audit services,audit fees are getting lower and lower,and the time for project arrangement is getting shorter and shorter.The existence of these factors has further increased the corresponding audit risk.In view of the problems existing in the auditing of IPO by HD accounting firm,this article also puts forward specific risk control suggestions,which can also provide some reference for other accounting firms.