Research On Related Party And Transaction Auditing

Related party transactions widely exist in the business activities of listed companies.Legitimate related party transactions can reduce the transaction costs of enterprises and improve the efficiency of capital use.However,some listed companies often use related party transactions for profit delivery out of self-interest.The complexity and concealment of related party transactions make the audit of related party transactions face many difficulties,such as identifying related party relationships,judging the authenticity of related party transactions and the correctness of disclosure.Therefore,how to effectively identify the relationship between related parties,how to evaluate the risk of material misstatement of related party transactions,and how to design and implement effective further audit procedures have become very important factors affecting the audit quality of financial statements.This paper uses literature analysis method,case study method and data analysis method to study the audit case of Ruihua Certified Public Accountants(special General partnership)on Kangdexin.The paper is divided into six parts.The first part mainly includes:research background and significance of related party transactions and fraud,research status at home and abroad,literature review,main innovations and deficiencies of this paper;In the second part,on the basis of defining the related party relationship and the types of related party,related party and transaction fraud,the content of the related party transaction audit and the particularity of audit are expounded.The third part introduces the general situation of Kangde new related party and transaction fraud,and then expounds the basic situation of Ruihua’s audit of Kangde new related party and transaction;The fourth part is the key content of the paper.It specifically analyzes the problems existing in ruihua’s audit of Kangdexin’s related parties and transactions,and analyzes the causes of the problems from the three levels of certified public accountants,accounting firms and external regulatory agencies.The fifth part,aiming at the above problems and their causes,puts forward relevant Suggestions aimed at improving the audit quality of related party transactions of listed companies.The sixth part is the summary and prospect.Innovation point of this article is from the Angle of the affiliated party transactions audit ruihua audit,new case study,in view of the affiliated party transactions audit discusses the problems and reasons existing in the research,combining theory with practice,and put forward in view of the affiliated party transactions from the Angle of multiple audit related Suggestions,in order to improve the quality of the audit of related party transactions of listed companies.