Auditing Risks of IPO and Risk-avoidance Research

Due to the low market access threshold and various other reasons, IPOs, after their accession to the share
market, have damaged the interests of many shareholders. In view of this, how to avoid auditing risks has become a sheer ne- cessity for all IPOs. Starting with the concept of IPO, the paper finds that IPO auditing is characterized by a long auditing span, a complex entrustment relation and a high auditing risk. And the influencing factors of IPO auditing risk are analyzed, namely factors on the part of the companies being audited; factors on the part of accounting firms; independent factors. And counter measures are suggested for the avoidance of auditing risks: careful selection of clients; the optimization of company governing structure; the reinforcement of the professional proficiency of auditing accountants; the heightening of accounting in- dependence; the perfection of monitoring and supervision; and the stepping up of the punishment to IPO disinformation.