Research On Corporate Governance Of Southeast Asian Corporations

In order to promote the development of China’s capital market and improve the multi-level capital market structure,China has begun to implement a registration system.Under the registration system,regulatory agencies only conduct formal reviews of enterprises without making value judgments,transforming the threshold of the approval system into strict requirements for information disclosure,while the audit risk is transferred to intermediary institutions such as accounting firms.Therefore,how to effectively evaluate and reduce the IPO Audit risk under the registration system has become an urgent problem.In China,most of the previous studies on IPO audit risk were based on the approval system,while the registration system was relatively less involved.The audit risk influencing factors involved in the IPO audit process are both numerous and complex,making it difficult to comprehensively assess them.Moreover,qualitative analysis methods are commonly used,with strong subjectivity.Secondly,the study of IPO audit risk is still analyzed from two aspects: the risk of material misstatement and the risk of inspection,without considering the particularity of IPO audit.Most of the previous studies on IPO Audit risk in China were based on the approval system,and the registration system was relatively less involved.However,the Audit risk influencing factors involved in the IPO audit process are numerous and complex,which is difficult to comprehensively assess.In addition,the previous studies often use qualitative analysis methods,which are highly subjective.Secondly,the research on IPO Audit risk is generally from two aspects of major misstatement risk and inspection risk,without considering the particularity of IPO audit.This paper uses the case analysis method to build an evaluation model of Audit risk based on fuzzy analytic hierarchy process,taking the IPO project of Z Company as an example,in order to reasonably evaluate the IPO Audit risk.Through the model built,it is estimated that the IPO Audit risk of Z Company is at a "high" level,which requires auditors to be cautious.Analyze Company Z from three aspects: significant misstatement risk,inspection risk,and special IPO risk under the registration system.Finally,from the perspective of audit subject,audit object and external environment,the paper puts forward corresponding suggestions to help reduce IPO Audit risk under the registration system.