Abstract
IPO fraud has been a hot issue in academic research recently. The false statement behaviors of enterprises severely affect the healthy development of capital market, harm the interests of investors, and thus cause a widespread concern in the community. In these cases, there are also impacts on the accounting firms’ economic and reputation in varying degree. The effective management of audit risks can reduce the loss, timely correct the possible audit risks, and improve audit quality and professional image of CPA. This paper mainly researches how to supervise and control the audit risks in the IPO audit project.
Highlights
In recent years, IPO frauds frequently occur in capital market in china, such as Edmond Health Division, green earth, and the new earth
The third part is some management suggestions and requests that are given according to main IPO audit risks
The actual situation of the enterprise are not identical, and certified public accountants sample according to the experience of the sampling, so the extracting samples may not represent the actual situation of the audit's overall, and accountants according to the deviation from the actual situation of the sampling results for inference, probably wrong audit conclusion, the resulting audit risk
Summary
IPO frauds frequently occur in capital market in china, such as Edmond Health Division, green earth, and the new earth. The effective management of audit risks will manage the audit risks actively in accordance with the law and the reason how audit risks happen It can reduce the loss audit risks, correct and remedy the possibility of audit. (2015) The Research of Initial Public Offering Audit Risk Management. At last it improves the quality of auditing and CPA’s professional image. What the management of audit risks is will directly affect this industry’s survival and development. This paper firstly combines the research literatures about IPO audit risk and states the evolution of the audit risk model. The main IPO audit risks are analyzed in this paper. The third part is some management suggestions and requests that are given according to main IPO audit risks.
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