A Case Study Of IPO Audit Failures Based On The Revised G&B Audit Conflict Model

With the vigorous development of China's capital market,more and more enterprises want to raise funds through IPO.Due to the existence of information asymmetry,investors can only judge whether it is worth investing through the information disclosed by enterprises,which puts forward higher requirements for the authenticity and integrity of financial information disclosed by enterprises,and the emergence of IPO audit is to ensure this one o'clock.However,with more and more IPO financial fraud being exposed,the number of accounting firms subject to punishment is increasing year by year,and the credibility of audit begins to be questioned by people.The failure of IPO audit not only damages the reputation of accounting firms,hinders the normal and orderly development of capital market,but also damages the interests of investors.Therefore,it is of profound practical significance to study the causes of IPO audit failure and the corresponding avoidance measures.This paper combines modified G&B audit conflict model of game analysis with specific IPO audit failure cases,analyzes the specific causes of audit failure and puts forward prevention suggestions,including the following five parts:The first part is the introduction,which introduces the research background of audit failure and the theoretical and practical significance of using G&B audit conflict model to study IPO audit failure,and summarizes the research literature of domestic and foreign scholars on the definition of audit failure,the causes of audit failure and the preventive measures of audit failure by using the literature analysis method.At the same time,it expounds the research content,research methods and innovative ideas of this paper.The second part introduces the related basic theory and the revision of the G&B audit conflict model.First of all,it summarizes the theoretical basis such as principal-agent theory,information asymmetry theory and audit conflict theory,which lays the foundation for the research of power game between management and auditors in the audit process and the analysis of Dengyun IPO audit failure using G&B audit conflict model.Then on the basis of the original G&B audit conflict model,the paper analyzes the power game and interest conflict between the management and the auditors in the audit process,optimizes the original G&B audit conflict model and analyzes the specific factors,mainly from the two aspects of the pressure exerted by the management and the ability of the auditors to resist,so as to provide the model support for the subsequent analysis of specific cases.The third part is introduction to the failure cases of Dengyun's IPO audit,including the general situation of Dengyun Auto-Parts Company,the general situation of Shinewing Certified Public Accountants,the financial fraud of Dengyun's IPO,the punishment of CSRC and the punishment of CSRC to Shinewing Certified Public Accountants.The fourth part is the case analysis,which applies the modified G&B audit conflict model to the case company,and analyzes from four aspects:the force drive of the management to exert pressure,the restriction factor of the management to exert pressure,the force drive of the auditor's resistance ability and the restriction factor of the auditor's resistance ability,to explore the key factors that affect the audit failure,so as to provide the basis for the following countermeasures and suggestions.In the fifth part,based on the modified G&B audit conflict model,it puts forward specific suggestions on how to prevent IPO audit failure.From the four aspects of reducing or eliminating the power driving of the pressure exerted by the management,enhancing the restricting factors of the pressure exerted by the management,enhancing the power driving of the auditor's resistance ability and reducing the restricting factors of the auditor's resistance ability,this paper gives the preventive measures to avoid the IPO audit failure.The innovation of this paper is as follows:First,On the basis of G&B audit conflict model(Goldman and barlev,1975),game analysis is introduced.Based on the conflict of interest and power game existing in different audit stages between management and auditors,the specific content elements of the power driving and restricting factors that affect the power game of both parties in the model are added.From the power driving and restricting factors that the management exerts pressure,and the audit Four dimensions of the force driving and restricting factors of the resilience of auditors to build a modified G&B audit conflict model.Second,Based on the modified G&B audit conflict model,this paper analyzes the specific cases of IPO audit failure,which not only can get the specific factors of IPO audit failure more comprehensively,but also can put forward corresponding preventive measures according to the model,which has certain reference significance for avoiding IPO audit failure.