1. How long does it usually take to go public?
For companies with different specific circumstances, the time from enterprise restructuring to listing depends on the specific circumstances, and the overall time is more than one year.
Under normal circumstances, the approximate time of each stage is:
It takes about six months from planning the restructuring to establishing a joint stock limited company, and the time for changing a standardized limited liability company into a joint stock limited company can be shortened;
It takes about 3 to 4 months for intermediaries such as sponsors to conduct due diligence and issue application documents;
Theoretically, it takes about 3 to 4 months from the examination by the CSRC to the issuance and listing, but the actual operation time is often around 10 months.
However, as can be seen from the above, the preparation time for listing varies from enterprise to enterprise, so it is difficult to generalize, and sometimes it has a great relationship with the personality characteristics of senior leaders of enterprises and the professional level of intermediaries. From the practical point of view, it is very fast to declare within one year, which has not taken into account the influence of policy factors such as the suspension of acceptance by the CSRC or special industry restrictions during the period.
Second, what are the types of audit procedures?
1, check records or files.
The inspection of records or documents refers to the inspection of records or documents produced by certified public accountants in the form of paper, electronic or other media inside or outside the audited entity. The purpose of checking records or documents is to verify the information contained or should be contained in financial statements.
2, check the tangible assets
Tangible assets inspection refers to the physical inspection of assets by certified public accountants. The procedures for checking tangible assets are mainly applicable to inventory and cash, as well as securities, notes receivable and fixed assets. Inventory of tangible assets can provide reliable audit evidence for its existence, but it may not provide reliable audit evidence for the determination or evaluation of rights and obligations.
Step 3: Observe
Observation refers to the observation of the activities or procedures of the relevant personnel by certified public accountants. For example, observe the inventory counting or control activities performed by customers.
The audit evidence provided by observation is limited to the time when the observation occurred. Under the condition that the relevant personnel are known to be observed, the activities or execution procedures of the relevant personnel may be different from the daily practice, which will affect the CPA's understanding of the real situation. Therefore, it is necessary for certified public accountants to obtain other types of supporting evidence.
Step 4: Ask
Inquiry refers to the process that certified public accountants obtain financial information and non-financial information from insiders inside or outside the audited entity in written or oral form, and evaluate the answers. The investigation itself is not enough to find significant misstatements at the identification level, nor is it enough to test the effectiveness of internal control operation. Certified public accountants should also implement other audit procedures to obtain sufficient and appropriate audit evidence.
5. Confirmation letter
Confirmation letter refers to the process that certified public accountants obtain and evaluate audit evidence by directly stating relevant information and existing conditions to a third party in order to obtain information that affects the items identified in financial statements or related disclosures. For example, confirm the balance of accounts receivable or bank deposits. The evidence obtained through communication is highly reliable, so communication is an important program that is highly valued and often used.
Step 6 recalculate
Recalculation means that certified public accountants check the accuracy of data calculation in records or documents manually or by using computer-aided auditing technology. Recalculation usually includes calculating the total amount of sales invoices and inventories, summing up journals and sub-ledgers, checking the calculation of depreciation expenses and deferred expenses, checking the calculation of tax payable, etc.
7. Re-execution
Re-execution refers to the independent re-execution of the program or control as a part of the internal control of the audited entity by certified public accountants manually or by using computer-aided auditing technology. For example, certified public accountants use the deposit journal and bank statement of the audited entity to re-compile the bank statement and compare it with the bank statement of the audited entity.
8, analysis program
Analysis program means that certified public accountants evaluate financial information by studying the internal relations between different financial data and between financial data and non-financial data. The analysis program also includes fluctuations and relationships that are inconsistent with other relevant information or seriously deviate from the expected data determined through investigation.
Auditors can complete risk assessment and substantive procedures by performing the above procedures alone or in combination, which is not suitable for control testing.
The above is the content of how long it usually takes to review the listing. For different companies with different specific circumstances, the time from enterprise restructuring to listing should be determined according to the specific circumstances.