Research On The Risk Of IPO Audit On Science And Technology Innovation Board

In order to promote the independent innovation of local enterprises and the development of high-tech industries,and to comply with the requirements of the era of "removing from the virtual to the real",while deepening the reform of the capital market and promoting high-quality economic development,my country announced the establishment of a science and technology innovation board and pilot projects on November 5,2018 Registration system.The Sci-tech Innovation Board was launched on June 13,2019.Since the first batch of listed companies were listed on July 22 of the same year,258 companies have registered on the Sci-Tech Innovation Board.Compared with the traditional approval system in my country,the registration system of the sci-tech innovation board pilot is undoubtedly an important reason why many companies choose to be listed on the board.Therefore,the registration system has more tolerant listing requirements and focused information disclosure.As well as the characteristics of "technological innovation" companies,and the particularities of IPO companies,they also bring huge audit risks to audit work that are different from the traditional approval system.The research question of this article is to analyze the audit risks faced by certified public accountants and the corresponding risk control countermeasures in the IPO audit of the Science and Technology Innovation Board.As the Sci-tech Innovation Board has only been launched for two years,there are very few relevant audit risk research documents,almost in a blank state.The registration system of its pilot program is significantly different from the approval system supported by more documents.With the gradual escalation of frictions in Sino-US trade relations,the Sci-tech Innovation Board will become a better choice for domestic high-tech companies to go public.Therefore,this article is for the foreseeable increase in the number of accounting firms and certified public accountants that undertake IPO audit projects on the Sci-Tech Innovation Board.The audit unit provides certain theoretical suggestions on the risk of major misreporting and prevention of audit risks.This article adopts modern risk-oriented audit theory,principal-agent theory and resource allocation theory to analyze the IPO audit risk of the Sci-tech Innovation Board.First,according to the IPO requirements of the Sci-tech Innovation Board,the characteristics of the SSE Innovation Board’s listing rules are explained.Analyze the key audit item paragraphs,the content of the inquiry and the three-round inquiry content and response of the selected case in the audit report of the IPO company,the prospectus,the audit report and other document data.From the perspective of the certified public accountant and the accounting firm,Analyze the risk of material misstatement at the level of the audited unit’s financial statements and the level of identification and the auditor’s inspection risk to obtain corresponding risk descriptions,and provide CPAs and accounting firms with risk control for IPO audits on the Science and Technology Innovation Board based on the analysis content Countermeasures.The conclusion of this article is that the current IPO audit risks of the Sci-tech Innovation Board are mainly concentrated in revenue recognition and accounts receivable.The reason is that the science and innovation attributes of the Sci-Tech Innovation Board companies and the CPA’s "model" explanatory method in the key audit matters section.In order to cope with such audit risks,it is recommended that CPAs and accounting firms(1)strengthen the ability to grasp the characteristics of the Sci-tech Innovation Board industry;(2)Appoint a certified public accountant that is different from the annual report audit to perform the IPO audit of the Sci-Tech Innovation Board;Time and human resources;(4)Improve the internal control system of the firm and strengthen the sense of responsibility for information disclosure supervision.