Research On The Ipo Audit Risk

With the rapid development of China's economy,more and more companies have entered the capital market through initial public offering(IPO)to obtain financing and better development opportunities.Whether the enterprise can be successfully listed,the role of the certified public accountant who is known as the “economic police”of the capital market is crucial.However,in recent years,IPO companies have been exposed by the news media or listed by the Securities and Futures Commission,and financial fraud and illegal cases are not uncommon.In 2013,the financial fraud incidents of Wanfushengke,Greenland,Xindadi and other companies broke out one after another.The series of audit failures caused by the company's IPO financial fraud came to the forefront,and then the relevant accounting firms were pushed.It has attracted a lot of attention to the financial authenticity of IPO companies.Wanfushengke,Tianneng Technology,Xintai Electric,Zhenlong Specialties,etc.IPO financial fraud incidents that have been clearly listed by the China Securities Regulatory Commission are accompanied by the failure of CPA auditors due to lack of sufficient professional prudence.This usually leads to certain fluctuations in the securities market order,has a negative impact on the allocation of market resources,and at the same time easily attacks market confidence,reduces investor initiative,and has a negative impact on the continued development of the securities market.The authority of CPAs is also It is easy to be questioned by the market.Based on this,in terms of IPO audit,the CPA should respond reasonably and use certain methods to deal with audit risks.At the same time,IPO audit has certain special characteristics.Studying how to improve risk identification and prevention in IPO audit will help CPAs effectively control and avoid audit risks,improve audit quality,promote the healthy development of CPA industry and social economy.Run steadily.In June 2019,Science and Technology Board was successfully established on the Shanghai Stock Exchange,opening the road to deepening reform of China's capital market.The main features of the company that has landed on Kechuang board are the scientific and technological innovation enterprises that conform to the current national strategy and have the world's leading key core technologies and high market recognition.The distribution is matched with the registration system,with information disclosure as the core and adopting transparency.The inquiry-based audit puts forward higher requirements on the quality of accounting information and the audit quality of CPAs related to it.With the launch of the science and technology board,the IPO audit of listed companies will play a more active and important role in the ecological construction of a more standardized,transparent,open and inclusive capital market.At the same time,the IPO business,especially for the listing of some high-tech innovative companies,the high-risk characteristics of the company will undoubtedly make the auditing risk of accounting firms to undertake such business increase.As an auditing entity,CPAs bear the social responsibility of safeguarding the public interest.Paying attention to IPO audit risk is of great practical significance for the quality of auditing and the orderly development of stable capital markets.At present,the research on the financial fraud of the company's listing mainly focuses on the financial reporting fraud of IPO enterprises.Based on the perspective of CPA,how to identify the main audit risk points and related improvement methods in the IPO audit practice process lacks in-depth research.Therefore,based on the IPO audit risk perspective of CPA,this paper deeply explores the reasons for the audit failure of the firm.Based on the analysis of the IPO audit failure cases and the IPO audit status in recent years,this paper sorts out the common IPO audit risk of CPAs.Point and audit risk factors.This research has far-reaching theoretical significance for helping CPAs to reduce audit risk,protect investors' personal interests and promote deepening reform and standardized development of China's capital market.Based on the research results of the existing scholars,this paper takes the principal agent theory,audit conflict theory and information asymmetry theory as the theoretical basis,and uses the literature research method,theory and case analysis method to select the first batch of GEM listed.Jinya Technology,is the research object.The company entered the GEM as a representative of high-tech enterprises in the past,or may face the possibility of being forced to withdraw from the market.Based on the perspective of IPO audit risk points in this case,this paper conducts an in-depth analysis.The research results show that CPAs have inflated operating income and assets,and reduced costs in the audit process of Jinya Technology's annual report before listing.Significant misstatement risk points such as fictitious innovation profit model.The direct consequence is that the accounting firm failed to audit.Unlike other delisting stocks,the company's shareholders are almost all retail investors.Once delisted,it will bring significant losses to investors and seriously affect the effective operation of the capital market.At the same time,the research shows that the following risk points are examined in the IPO audit of Jinya Technology by CPAs: CPAs fail to maintain their due independence;CPAs are not competent in professional competence;CPA firm's business quality control is not in place.Based on this,this paper puts forward relevant suggestions and countermeasures for how to prevent IPO audit risk in China from all aspects.The research in this paper provides a reference for CPAs to effectively identify audit risk points in the company's IPO audit business,which helps to improve the sensitivity of CPAs to IPO financial fraud,reduce audit risks,and prevent audit failure to a certain extent.To reduce the negative impact on the firm itself and the capital market to provide a theoretical reference.