Research On Risk Control Of Affiliated Transaction Audit

Related party transactions is intricate and secret,so it is difficult to be identified by supervision departments and auditors.A growing number of public companies use related party transactions to implement financial fraud,and audit failures also occur frequently.This kind of behavior damages the rights of investors and interferes the order of China securities market.Kangdexin fraud is serious,which has caused widespread concern in the community.But at present,few scholars analyze it from the point of view of audit risk control of related party transactions.This paper takes Kang dexin as an instance,which combines related party transactions fraud with audit,then focuses on audit risk control,and carries out research in close combination with audit practice.Firstly,on the basis of the correlation study of scholars at home and abroad on audit risk of related party transactions,this paper expounds the correlation concepts and theoretical foundations.Secondly,this paper discussed the present circumstances of China related party transactions,include transaction violations and audit failure,it also sums up the primary method of related party transactions fraud and the principal causes for audit failure.Thirdly,this paper discussed the contributing factors of related party transactions audit risk from two ways,include material misstatement and inspection risk.Finally,this paper analyzes the fraudulent means of Kangdexin’s related party transactions,including the use of related parties to fabricate economic business,related parties to illegally occupy the company’s funds,and providing the controlling shareholders with illegal related guarantee.At the same time,this paper identifies and evaluates the material misstatement risk that may be caused by Kangdexin related party transactions from the four dimensions of poor external environment,excessive operating pressure,internal control failure and abnormal financial data,and also sums up the reasons for the failure of the audit risk response of Ruihua accounting firm.In conclusion,this paper holds that strengthening the audit risk control of related transactions needs to be completed by the supervision department,public companies,and accounting firms and their employees.Therefore,this paper give some advices,such as optimize the management structure and measures of related party transactions,strengthen the performance of enterprise internal control system,strengthen the audit risk evaluation ability of auditors,and promoting the audit risk response ability of accounting firms,in order to manage the audit risk of related party transactions more effectively.