Research on Audit Risk of T Enterprise

Abstract

This paper discusses the audit risks faced by T Company during its initial public offering (IPO) on the STAR Market. As an important segment of China's capital market, the STAR Market plays a crucial role in supporting innovative technology enterprises. Therefore, the management and control of IPO audit risks are of great significance. As a representative of listed companies on the STAR Market, the study of T Company's IPO audit risks is of great importance to the healthy development of the entire STAR Market. This paper first analyzes the basic characteristics and formation mechanism of IPO audit risks on the STAR Market, pointing out that audit risks mainly stem from multiple aspects such as the company's own operational risks, internal control deficiencies, and changes in the market environment. Then, taking T Company as an example, it analyzes a series of potential audit risks that may arise. Through in-depth research on T Company, it is found that there are problems in the company's implementation of audits. Therefore, this paper combines the analysis to propose solutions. The first is that the company must strengthen internal management, encourage internal personnel to learn, and ensure the competence and professionalism of the cooperating audit institutions. The second is to pay attention to the company's related-party transactions and significant dependencies to prevent audit risks caused by related-party transactions.