The first is the macro level. At this level, there is not much difference between IPO and other industries. The audit focuses on whether the assets, profit and loss and cash flow for three consecutive years are true, and at the same time, some details should be considered, such as whether the financial ratio is reasonable. Whether the ownership structure meets the requirements of the CSRC, but these are often issues to be considered when underwriting investment banks.
The second is the micro level, which involves the development of specific audit business. You need to have a deep understanding of various business contents of securities companies. Judging from the current domestic brokerage business, it can be mainly divided into the following categories:
1, brokerage business
2. Investment banking business
3. Self-operated business
4. Asset management business
The above is the traditional business of securities firms, and the innovative business includes
1, financial derivatives
2. Direct investment business
3. Margin trading (start immediately)
Background business involved
1, liquidation
2. Information system
The above are just business categories divided by major categories. Judging from the current trend, investment banking tends to be subdivided.
From the audit point of view, especially IPO audit, before the substantive test, the internal control test is the first, so the audit work should start from understanding the process of each business.
As a special industry, securities companies have special business nature and accounting methods. Therefore, before the audit, we must thoroughly understand and be aware of it.