Research On The Improvement Of Financial Norms Before IPO Due Diligence Of Y Company

At present,many private architectural design enterprises in China in scale expansion and industrial chain expansion,will be listed as an effective way to improve the management level,access to full financing,because the GEM IPO of the overall listing difficulty is slightly lower,so it has become the first choice of most private architectural design enterprises.The IPO of GEM adopts the registration system audit method,which will have more stringent requirements on the financial standards of enterprises,and most private architectural design enterprise accounting foundation is weak,will appear in the process of IPO reform is difficult,cycle is long,not only it is difficult to choose to sponsor counselling organization,still need to pay high commission payment,IPO listing pass rate is low.Based on this,private architectural design enterprises should take the initiative to improve their financial standards in the transition stage before selecting counseling institutions and carrying out financial due diligence.Through the form of "self-rectification in the early stage and institutional counseling in the late stage",they can save a lot of time cost and increase the probability of successful IPO listing.This paper takes Y company,which is currently in the early stage of IPO due diligence,as the research object.The irregular basic accounting work and business activities of Y company are the important reasons leading to its financial irregularities.First,fully considering Y company’s business characteristics and financial work,this paper analyzes Y company’s financial normative status before IPO due diligence from two aspects: accounting basis and business operation.Secondly,the fuzzy AHP method is used to find out the key points of improving Y company’s financial standardization before IPO due diligence.With the guidance of documents such as the guidance of financial work norms and the key questions for architectural design enterprises’ IPO,experts assign weights to each index in the evaluation index system of Y Company’s financial standardization.The index with a score lower than 2 is regarded as the focus of financial standardization improvement of Y Company at this stage.Respectively,rules and regulations of financial institutions compliance,financial soundness and execution,preparation of financial reports of financial regulation accuracy,timeliness,submit the financial report of contract file management compliance,use normative contract seal,revenue recognition policy compliance revenue calculation accuracy,timeliness money off its cancel after verification.Thirdly,in view of the problems in the above indicators,this paper proposes the principles and framework for improving Y company’s financial standardization,and propose solutions from six aspects,including the organizational structure of the finance department,financial rules and regulations,financial report approval process,contract file management,revenue recognition and accounting method,and accounts receivable management.Finally,the analysis of Y company IPO do before financial regulatory effect for ascension will be put into actual operations of the Y company measures,after a trial period,by the expert scoring again,found that the indicators score a sharp growth,achieves 2.5 points above the average,basically met the third-party financial verification,The overall financial normative improvement effect is obvious.The research results of this paper provide a theoretical basis for the focus of financial standardization improvement of Y company in the early stage of IPO due diligence,and put forward practical solutions according to various problem indicators,which are helpful to improve the passing rate of Y company’s IPO audit and reduce the coaching fees paid to thirdparty professional institutions.It has certain theoretical reference value and practical reference significance for other IPO private architectural design enterprises hoping to improve financial standardization.