Case Study On Audit Risk Of Related-Party Transactions Of Xinlun New Material

The related party transaction is different from the ordinary purchase and sale transaction.Compared with the ordinary purchase and sale transaction,the related party transaction is often more complicated and hidden,and the transaction forms are more diversified.On the one hand,this special form of transaction can play a positive role in realizing the scale management of the company,optimizing the allocation of enterprise resources and reducing transaction costs.On the other hand,it also has negative effects such as disturbing the market order,using related party transactions to adjust profits or transfer interests.In addition,related-party transactions have become a common phenomenon in the economic market,which also brings challenges to the work of accounting firms and auditors,leading to higher audit risks at least,and even audit failure at worst.Therefore,accounting firms should strengthen the risk awareness of related party transaction audit and strictly carry out related party transaction audit.This paper takes the Xinlun New Material of A-share listed companies as the case study object.Firstly,through literature research method,it simply sorts out the research results of domestic and foreign scholars on related party transactions,the causes of related party transaction audit risk and countermeasures,and summarizes them,providing reference for the writing of subsequent articles.Secondly,it seeks the basis of related party transaction audit in theory,which can be provided by fraud triangle theory,risk-oriented audit theory and insurance theory.Then the Xinlun New Material related party transaction audit case is introduced,the fact of its fraud is elaborated in detail,and combined with the fact of the Xinlun New Material related party transaction fraud analysis of the audit risk faced by accounting firms and certified public accountants in the audit of related party transaction.In the analysis of the audit risk,it is further divided into two levels,namely,the risk of material misstatement and the risk of inspection.After sorting out the audit risks of related party transactions of Xinlun New Material,this paper further explores the causes of material misstatement risks and inspection risks in the audit of related party transactions.Finally,according to the causes of related party transaction audit risks,this paper puts forward countermeasures and suggestions to prevent related party transaction audit risks,hoping to improve the ability of auditors to identify related party transaction risks.Improve the audit quality of related party transactions.