Research On IPO Project Audit Collusion And Its Governance Scheme

In the 21 st century,with the deepening of socialist market economic system reform,more and more enterprises are expected to make use of policy advantages to seize the opportunity of the industry in the fierce market competition to seek for vitality in the new situation.There are more and more enterprises choose to IPO,through raising funds to expand the scale of production level to expand capital stand firm.In the process of the capital market becoming mature,the enterprises have strong financial fraud,financial statements whitewashing motivation and behavior when they do not meet the conditions and threshold of IPO listing,At this time,the external market supervision power provided by the accounting firm plays a key role in the development of the capital market and the company in the capital market.However,the auditing process of IPO projects with the participation of external certified public accountants is not completely independent,and there is often a connection with the interests of enterprise management,that is,the audit collusion.Because the audit collusion's concealment makes the supervision organization and the outside investor difficult to identify,the destructiveness is also difficult to measure.Frequent audit collusion between IPO and accounting firms disrupts financial order to a great extent,The function of stock market has been dissimilated seriously,which has dealt a heavy blow to the stable development of investors and capital market.The public trust of Ministry of Finance and China Securities Regulatory Commission has declined,which also has a serious negative impact on the whole CPA industry.It is worthy of the whole industry's attention to audit collusion.This paper takes the IPO audit collusion of Dengyun company and Xinyong accounting firm as an example.Firstly,it defines the concept of audit collusion and explains the essence of audit collusion in practice through game model.Secondly,it qualitatively analyzes the means of financial fraud,the causes of CPA's participation in audit collusion,and finds out the reasons that urge the management of the enterprise to seek for The motives of collusion and CPA's consent to collusion are analyzed as the external environment that provides opportunities for collusion,and then governance schemes are put forward from three time nodes of audit collusion prevention in advance,identification of audit collusion and post control of audit collusion to combat audit collusion.Among them,pre event control includes preventing IPO companies from financial fraud,strengthening and improving audit independence,government reform performance evaluation standards,qualitative audit collusion and improving laws and regulations;in event control includes CSRC paying special attention to collusion risk points,using multiple regulatory means and standardizing the listing process of enterprises;post event control includes increasing law enforcement and speeding up punishment,improving enterprises and Auditor's reputation mechanism.By studying the causes of audit collusion and the countermeasures,this paper urges the external investors,the CSRC and other regulatory departments to treat more strictly the accounting information disclosed by IPO enterprises and the audit reports issued by the third party,so as to prevent financial fraud and control audit collusion,promote the reasonable allocation of capital resources,and make it operate more reasonably and effectively.