On Audit Risk Of IPO Related Receivables

The China Securities Regulatory Commission(CSRC)released the "Basic Information on Capital Market Practices of Securities Qualified Accountants" in 2019,releasing a signal of strict supervision and inspection of accounting firms,and stated that while strictly punishing and violating illegal acts in accordance with the law,Actively explore the establishment of an information disclosure system for securities-qualified accounting firms,and promote the construction of an audit market ecosystem that will survive the fittest.From 2016 to 2018,as many as 20 firms were punished for IPO business violations.Among them,Ruihua Certified Public Accountants has been administratively penalized 5 times and 11 times in the past three years,and Lixin Certified Public Accountants has reached 5 Family visits and 10 visits,Lianda accounting firm reached 3 visits and 6 visits.Due to the lack of due diligence of accounts receivable projects,income fraud has been concealed,and the audit report issued is not objective and fair,and the proportion of firms punished by the Securities Regulatory Commission is as high as 75%.In the context of stricter supervision of accounting firms,the consequences of audit failure are serious.How to effectively prevent the audit risk of certified public accountants in the area of accounts receivable from IPO companies is a matter of great significance.Accounts receivable are an important means for financially troubled companies to manipulate revenue.IPO companies usually use this method to optimize their financial situation in order to meet the profit requirements of listing.Xintai Electric is a typical example,forging bank documents,manipulating the balance of accounts receivable,and fictitious collection of accounts receivable to beautify the statements,so it is subject to the top penalty of delisting.At the same time,Beijing Xinghua Certified Public Accountants(hereinafter referred to as Beijing Xinghua),which undertook the audit business,was issued a warning letter by the China Securities Regulatory Commission due to the fact that no such problems were found during the audit,which adversely affected its own development.Taking Xintai Electric as an example,this paper studies the prevention of IPO accounts receivable audit risk,which is mainly divided into the following four parts: first,analyze the characteristics of China’s IPO receivables audit;second,on the one hand,Beijing Xinghua Certified Public Accountants audited Xintai Electric from the beginning and the end,and on the other hand,analyzed the problems in its IPO audit process: failed to implement alternative audit procedures,failed to fully assess the audit risk of accounts receivable,and failed to obtain sufficient responses Account receivable customer information and insufficient industry data;again,analysis of the reasons for Beijing Xinghua’s IPO account receivable audit risk,including: irregular execution of account receivable audit process and audit risk of IPO receivable account Insufficient attention,insufficient external transfer authority of auditors,and no established industry database.Finally,based on the above analysis,it puts forward the implementable IPO receivables audit risk assessment and prevention countermeasures.The research methods used in this article include the following three: one is the literature research method,which summarizes and summarizes the relevant basic theories of account receivables and audit risks,and at the same time screens and organizes the data to form data chart data;second is the case study Method,through the analysis of the audit process of Beijing Xinghua Institute,to study the audit risk of accounts receivable in IPO audit,and find problems and propose effective countermeasures based on it;the third is the comparative analysis method.The horizontal comparison of the industry and the vertical comparison of itself reveals anomalies,and it is found that its accounts receivable are high-risk points of fraud.The innovation of this article is that the research focuses on the prevention of audit risks of accounts receivable from IPO companies,reminds the importance of preventing audit risks of accounts receivable from IPO companies,and provides reference for accounting firms to deal with such audit risks.At the same time,Make up for the prevention research of IPO audit risk from a micro perspective.